Where to stay in Tokyo on a budget

Where to stay in Tokyo on a budget? Is that even possible? Yes, it is!
Japan, and especially Tokyo, has a reputation for being a high-cost travel destination. The truth is, it’s much cheaper than most people expect. You can do it with a tight budget, too.
I share my tips for a few affordable hotels and hostels in Tokyo, some of the cheap rooms where I have stayed on my trips. Plus, some other options to choose from.

Last updated Feb. 25th, 2026

*This post includes affiliate links

How much does it cost to stay in Tokyo

The sky is the limit, of course, but my tips are for places to stay for less than 100 euros a night, usually much less.
We’ll dig deeper in a bit, but first, a little bit of background for this article.

I have traveled to Japan multiple times, and often stay months at a time.
Being a digital nomad and constantly traveling, I couldn’t spend as much money as people who travel a couple of times a year and are willing to pay for luxury on their holidays.

Once again, I read a post on a travelers’ group on Facebook asking for Tokyo accommodation prices.
This poster had been asked for almost ten thousand euros for a less than two-week itinerary. It’s fair to say that it also included tours elsewhere in Japan, but the price was still ridiculous.
10,000! I traveled for three months in Japan for half of that money! Twice.

Budgeting for a Japan trip

Some travel agents seem to think that everyone can afford to pay 1000 euros a day.
I understand it’s their work and source of income, but I think some of the agents could stand a bit more on their customers’ side and not just be greedy for their profits.

A thousand euros is a crazy amount of money, and my total budget for my Japan trips is usually much less than 100 euros a day.
Actually, 50 euros a day is pretty much what I spend in total, but being quite a frugal minimalist, I would suggest others to budget a bit more.
Especially if you want to do some fine dining and shopping, of course.

But we’ll talk about other travel expenses at another time; this article is exclusively for budgeting for a place to stay in Tokyo.

I needed to do this for you

So what I did after reading another post about crazy high traveling costs to Japan: I searched through my notes to check the places I have stayed in Tokyo and sent the list to this traveler in doubt.

I have shared tips for my readers and friends for affordable stays when someone has asked, but I felt now it was time to find, well, time to write this article.

I feel so bad for people spending all their savings just because they don’t know how much is a reasonable amount to pay to stay in Tokyo, Japan, in general, or anywhere else while traveling.
Thanks for her asking, I finally made this list, and now I am sharing it with you too.

It’s not complete, and I might add more suggestions later on (when I remember all the places I’ve stayed in and hopefully I’ll soon get to try some new ones), but here is something for you to start with.

*Note: My list has affiliate links, so I might also get some profit if you book through my links, but for you, there are no extra costs.

Where to stay in Tokyo on a budget

Let’s talk about different accommodation styles first, so you can get an idea of what type of place would suit your needs and budget.
As a digital nomad practicing a slow travel lifestyle, I tend to stay in apartments, but in Tokyo, I usually stay only about one week at a time on my way to somewhere else in Japan. So I prefer hotels & hostels here.

Cheap hotels, hostels & capsule stays

To travel in Japan on a budget doesn’t mean you need to sleep in a park or an internet cafe, or such that. I wouldn’t.
Though I have been camping in Okinawa for 2€ per night, having my tent parked at the seashore. But that’s another story; let’s check out Tokyo accommodation options on a budget.
Hotels, hostels, and capsule hotels – all less than 100 euros a night.

Please note that in peak seasons and festive times, demand is high and prices can go up significantly, or everything is simply fully booked.
So my tip is to book a place to stay as early as you can, no matter what price range or accommodation type you are looking for.
I’m a last-minute booker, and I always get in trouble because of that.

Capsule hotels in Japan

You have probably heard of these tiny capsule hotels that are popular in the big cities in Japan, especially among businessmen.
They are inexpensive and also fun to experience. But if you are carrying luggage or have a tendency for claustrophobia, capsules might not be your choice.

If you are willing to try, just make sure for which gender they are reserved, especially if you are a female. Some of the capsule hotels only accommodate men, while others also welcome women.

For whom: Especially for solo travelers looking for the cheapest option.

Hostels in Tokyo

The second style of affordable accommodation is hostels. There are an enormous number of hostels in Tokyo to choose from.

If you think of those noisy and sweaty-socks-smelling youth hostels you’ve experienced in Europe or Australia, don’t worry. Japanese hostels are super clean and quiet.
What I most love about them are the beds. Forget about squeaky bunkbeds; in Tokyo hostels, you can expect to have a private little space, oftentimes with wooden walls.
These beds are similar to capsules, but usually a bit larger in size.

Some of these come with double beds! This is a great option for traveling couples. When I travel with my hubby, which I nowadays do in our nomadic life, this is our most popular choice.
Not only because of the double bed option and low price, but also because most of the hostels have a shared kitchen. A must-have for long trips and for anyone who doesn’t want to eat out multiple times a day, money-wise or otherwise.

Hostels might be a little bit more expensive than capsule stays, but not always. Plus, you can save money cooking for yourself or buying something from a kombini (l7/11, Lawson) to heat up in a microwave oven

For whom: Solo travelers & couples on a budget, and for those wanting to cook for themselves.

Hotels in Tokyo

Hotels are obviously the most expensive accommodation style in Tokyo, but it doesn’t mean that they are out of your reach with a smaller budget. Cheap hotel rooms are available in Tokyo, too.
At least, they are especially affordable if you are traveling with a partner.
A hotel room doesn’t necessarily cost more than two beds in a hostel dormitory.

We often book a room at *the APA Hotel. They are a chain with dozens of hotels around Japan, a few in Tokyo, too.
Rooms are usually small, but you can expect to pay around 70 € per night, which I think is a pretty good price in the world’s biggest city.
APA hotels are also centrally located.

For most of the other hotels in Tokyo, you can expect to spend more than 100€ per night.

For whom: For couples, or solo travelers on a bit more permissive budget.

Which area to stay in Tokyo

You probably wonder which areas are the cheapest to stay in Tokyo. My answer is that budget-wise, it doesn’t matter which neighborhood you choose. The best area is where you are sightseeing. Think of what you want to do and see in Tokyo – stay near your attractions to avoid traveling in crowded metros every morning and afternoon.

If you are a first-timer in Tokyo, you probably want to explore a few different neighborhoods, and will be using the metro a lot anyway, but staying near your top attractions helps. You can easily move more on your feet, and it’s easier to avoid the rush hours – public transportation can get really packed.

Also, if you are planning to sleep in Tokyo but think of doing daytrips by train, you might want to stay within walking distance of a specific train station. That will easily save you an hour of getting out of town.
I often stay in the Asakusa or Akabane-bashi areas, but they might not suit you well.

Budget-friendly accommodation in Tokyo

Finally, the ultimate list of affordable places to stay in Tokyo!
Haha, maybe not an ultimate, but you know, that’s how all travel bloggers love to refer to their posts and lists.
Honestly, I hope you find this helpful and will find something to make your Tokyo travel dream come true, even on a smaller budget.

I mention the location of the accommodation for each place to help you choose. Tokyo is a huge city with 14 million inhabitants, so if you are planning to visit a certain neighborhood of the city, you can save a lot of time by booking your stay in the same area.

I book my stays (hotels, hostels, and short-term apartments) via *Booking.com and am also their affiliate partner, so naturally, I use their links here.
Price examples are per night and are checked for December 2023, and they might vary daily.
When you click on the hotel link, just switch the dates for your needs, and you’ll see availability and exact prices. 

Aaand here it comes: the list of probably the best hotels in Tokyo on a budget!

The list
of cheap hotels & hostels in Tokyo
(in no particular order)

1.

APA is a big chain with plenty of hotels in many neighborhoods.
*This one has a nice little Japanese spa on the rooftop with small pools inside and outside on the balcony.
Location: Asakusa-Ekimae

Around 70 € per room

2.

*Book & bed
is a fun hostel concept – you will sleep on bookshelves!
The one we have stayed in doesn’t exist anymore, but this hostel is part of the same chain.
Location: Shinjuku

From 36 € per bed

3.

*Stay Work Asakusa
is a lovely hostel with comfy wooden sleeping “lockers” in a dorm. The public area is quite big, so there’s enough space for dining and working.
Location: Asakusa

Bed in a dorm 23 €
Private room 55 €

4.

*Tokyo Guesthouse Hive
I haven’t stayed in this one, but it’s similar to those I’ve been to, and it’s affordable and centrally located.
Location: Tokyo, Bakurocho Station

From 30€ (dorm)

5.

*Guesthouse Tokyo Azabu
This is also similar to places I’ve stayed, but I haven’t personally tested this one. I list this because of its location, as my favorite hostel in Akabanebashi was closed down a while ago.
I have stayed in the area multiple times, and I think it’s one of the most convenient areas to stay and explore the city on foot or by metro.
Location: Minato/Akabanebashi

From 30€ (dorm)

On my bucket list
(for aviation geeks)

I’m once again (autumn 2025) planning a trip to Japan – on a very tight budget – and have done a bit of research for the new affordable hostels and capsules in Tokyo.
I found quite a few interesting places to stay, but *this one I added immediately to my bucket list.

If you are an aviation geek like me, you get it. I just have to give it a try.
At least, prices starting from 36€ make it the cheapest Business Class around, haha. There’s also the First Class available, and it doesn’t cost much more.

It’s not the cheapest capsule hotel around, but they look like worth the money, and I’m always willing to pay a little extra for a hot bath.
Location: Akasaka + multiple capsules around the city, also at the Haneda Airport

From 36€ per bed (capsule)

To be continued…

P.S. Are you looking for destination ideas for your Japan trip?
Jump into our other Japan posts to get more travel tips.