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Bunk beds, communal kitchens, luggage lockers and towels for hire - where better to stay than in a hostel? Affordable, clean and ideally located, Edinburgh's hostels are places where hipsters, students and frugal tourists come to mingle and make friends. They are also where you'll get the most bang for your buck if you are looking for quality accommodation during Hogmanay or the Edinburgh Festival.

My highlights:

The Castle Rock Hostel can be considered one of the most picturesque in the city. Located under the castle ramparts, this gem offers free wifi, a free walking tour every morning at 10:35am, a free pub crawl every Thursday and a pool competitions on Wednesdays.

The converted church Belford Hostel still maintains its original bell tower. This gorgeous and hip accommodation overlooks Dean Village and offers a funky and exotic vibe. Bedrooms boast stained glass windows, and the entrance to the hostel is decorated with Braveheart caricatures.

The Globetrotter Inn is located on coast on the scenic south side of the Firth of Forth. Neat and effortless interiors with a balmy feel relax you completely. The hostel offers a different drinks promotion every night. Better still, there are pool tables, large screen TVs, arcade games, board games, fruit machines, live music and even a video jukebox. They also offer a great selection of value bar meals for when you don't feel like cooking. What's more when the weather's fine Globetrotter open the doors onto the garden and gets the barbie going.

Tucked away on the Royal Mile, Royal Mile Backpackers is a small hostel best suited for those looking for something a bit quieter than the usual chaos of the better-known backpacker options. It's a splendid location for excursions around the Old Town and a good base for trips to surrounding attractions. The lounge is comfortable and less busy than the nearby and lively High Street Hostel, which is under the same ownership.

Each year, Euro Hostels Edinburgh leases university accommodation while the students are on their summer vacation. The hostel accommodations comprise self contained, fully equipped apartments for between 3 and 12 people. It's an ideal set up whether you are in town with a group or traveling on your own. Prices start at just £19 per person per night and are never more than £39, even during Festival. This year it is open from June 10-September 4, 2011.

Image of Castle Rock Hostel courtesy of Hostels.com.