This post is about the best budget hotels in Iran. In preparing my trip to Iran it was sometimes hard to find information on budget hotels in Iran for backpackers. Many hotels in Iran do not have an internet presence and those who do are rather expensive.
Backpacker hostels are still very rare, but with tourism on the rise cheap hotels in Iran are opening up throughout the country. The demand for cheaper places to stay is high and most cities now have one or two budget hostels geared towards backpackers.
Because of the high demand making reservations for budget hotels in Iran, if possible, is recommended, especially in the high season. Therefore I decided to share my final top ten list of places I stayed or visited based on my own experiences.
Note: I was not sponsored or given discounts to write any of these reviews. They are based on my own experience and hostels were not aware that I was a travelblogger.
This post does contain affiliate links. Due to the sanctions most sites wont allow you to book things in Iran, but it is now possible to book hotels online through FirstQuest. They are one of the few companies where you can book things in Iran beforehand. If you do so, I get a small commission that keeps this website alive at no extra cost to you.
Hostel owner in Iran can contact me to add hostels to the alternative places to stay. For my readers, be aware that my only experiences are with the hostels that I described.
The 10 best budget hotels in Iran
Number 1 : Ehsan house, Kashan
By far the best place I stayed in Kashan was Ehsan house. It is a traditional house with a lovely courtyard. Staff is friendly and they can help you with everything. There is a lovely breakfast buffet included in the price and the restaurant offers a varied menu of traditional Iranian food that is not always easy to find in other restaurants. This is your chance to taste delicious fesendjoon or gorme sabji.
It is centrally located in a quiet alley opposite the Agha bozorg mosque. It’s on walking distance from both the bazaar and the old traditional homes. There are lovely decorated private and double rooms and for backpackers there is a lovely dormitory with 6 beds (500,000 rials as of April 2016).
Alternative budget hotels in Kashan
Read more about the best thinghs to do in Kashan
Number 2: Orient hostel, Yazd
Orient hostel is on number 2 mostly because of its restaurant. The hotel has a wonderful rooftop restaurant with a beautiful view on the blue mosque that serves delicious food. They have a varied menu including vegetarian options. Try Shuli, a soup speciality from Yazd or try camel meat.
Besides the restaurant the Orient hostel has nicely decorated rooms and a lovely courtyard. For backpackers there are dormitories including a female only dormitory (500,0000 rials as of April 2016).
Number 3: Kohan hostel, Yazd
I did not stay in Kohan hostel, but visited a friend who was staying here and this is another lovely place to stay. It is much smaller than the Orient hostel with a lovely courtyard in a traditional home. During the day there is free tea and there is also a nice restaurant menu. Nice and clean rooms and for backpackers a dormitory (300,000 rials as of April 2016 )
Alternative budget hotels in Yazd
another good place for the budget minded traveller is the Silk Road Hotel.
Read more about Best thinghs to do in Yazd.
Number 4: Niayesh Boutique hostel, Shiraz
Niayesh hotel is a bit overwhelmed by its own success and is therefore only on number 4. The rooms are all nicely decorated, the dormitory is nice and cheap (300,000 rials as of April 2016) and it has the best breakfast buffet I had in Iran.
The restaurant also has a nice menu with delicious food. Try kallam pollo, a speciality from Shiraz. The service is a bit mixed tough. Some staff are extremely friendly others are a bit indifferent.
Alternative budget hostels in Shiraz
Read more about the best thinhgs to do in Shiraz
This homestay like hostel with a very friendly and helpful owner offers two rooms that can either be booked as a private room for 20 euro or as a dormitory style room for 10 euro per bed (as of April 2016). This includes breakfast and tea. Probably one of the cheaper places to stay in Esfahan.
It is a bit outside of the city center and a bit difficult to find, but it is actually quite easy to get there by local bus. The owner will explain how to get to the centre by bus (5 minutes) or by walking (30 minutes). He might not always be open as he closes when he is out of town, but if he is there it is a very good option in Esfahan.
Alternative budget hotels in Isfahan
Esfahan is a very touristic city, but lacks decent budget options. You will not find traditional guesthouses like in Kashan, Shiraz or Yazd. They are there, but definitely on the more expensive side. However, also in Esfahan new backpacker hostels are opening up like Mahbibi hostel , Spring hostel, Seven hostels & Amir Kabir hostel
Read more about the best things to do in Isfahan
The only real backpackers hostel I stayed in Iran deserves place number 5 for its extremely helpful and friendly staff. No pictures are included as when I visited they were still in their old place in a really tiny building.
They have now moved to a bigger location. It’s a great place to meet other travellers and get all the advice and help you need. It’s in a quiet neighbourhood and it is easy to reach by Tehran metro. It has private rooms and a dormitory (500,000 rials as of April 2016)
Alternative budget hostels in Tehran
Have a look at Tehran grand bazaar.
Number 7: Hotel Koosaran, Gazor Khan in Alamut
Hotel Koosaran has no presence on the internet. It’s on number 6 for its amazing location. True, the hotel itself is nothing special. It is a small dormitory style room with 4 beds (300,000 rials as of April 2016). The balcony outside with the view on the mountains is amazing though.
The homemade food is a very welcome change from all the kabab. The lady who runs the place is quite a character herself. She might come across as a bit grumpy at first, but try to break the ice and you will find out she is a lovely person.
The guestbooks are a wealth of funny traveller stories and useful advice on hiking possibilities around this small lovely village. It is easy to hike up from here to the Alamut castle. Don’t expect much from the castle, but the views are amazing.
Read more about the Alamut Valley and the castle of the Assassins.
Number 8: Ordibehest hotel, Hamedan
Another hotel without any presence on the internet. In the less touristic central and western parts of Iran you are most likely to stay in the so-called mosaferkhaneh’s or mehmanpazir’s. Local guesthouses used by Iranian men or families.
They are nowhere as atmospheric as the traditional guesthouses in the touristic cities of Kashan, Isfahan, Shiraz or Yazd. Most of them are not so clean and bathrooms are often shared facilities. The Ordibehest hotel in Hamedan was a pleasant surprise in this range. Clean, cosy and friendly. Single room for 600,000 rials (as of April 2016)
Read more about Kermanshah & Hamedan
Number 9: Hedayat hotel, Sanandaj
All budget places in the lonely planet were closed. I decided to try out the Hedayat hotel. As expected of most mosaferkhaneh’s this place does not earn any award for cleanliness. However, people were very friendly and therefore it still made it into this list.
Also I had a nice view from my room on the top floor of the building. There are not many budget places to stay in Sanandaj and this is a good option. Single room for 500,000 rials (as of April 2016)
Read more about Iran’s Kurdistan: Sanandaj & Palangan.
Number 10: Hotel Kenareh, Rasht
Another typical mosaferkhaneh included for the friendly staff and relatively clean rooms. It has a central location near the bazaar. Single room for 400,000 rials (as of April 2016)
Read more about Gilan & Masuleh
Number 11: Mashad guesthouse, Tabriz
My first introduction to Iran was a nice one with Mashad guesthouse. Again it is a typical mosaferkhaneh. Shared bathroom facilities, not too clean, but friendly staff and centrally located near the bazaar. Single room for 300,000 rials (as of April 2016).
Read more about the best things to do in Tabriz.
Ellis is a travelblogger from the Netherlands with over 20 years of experience as an independent budget traveller in more than 50 countries. She has a Master degree in Cultural Anthropology and Global Health with a specialization in South Asian cultures and the Caucasus.