5 Best Backpacker Hostels in Palmerston North šŸŽ’ [2024]

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Where to Find Accommodation in Palmerston North for Backpackers

Save money when staying in Palmerston North by choosing one of the backpacker accommodations! Whether you’re a traveller coming to check out the bike trails, Manawatu Gorge or Rugby Museum or a student looking for somewhere to stay while you get settled in the city, there are a few good options for backpacker hostels in Palmerston North.

Although there are not strictly five backpacker hostels in Palmerston North, we’ve made sure to include holiday parks, guesthouses and homestays that are only marginally more expensive than hostels. These accommodations are extremely affordable for any backpacker or student in Palmerston North.

1. The Railway Hotel Backpackers

This old railway hotel has been given new life, revived as The Railway Hotel Backpackers. This good-looking hostel is well-decorated and clean and there’s plenty of space with several kitchens and lounge areas. What’s more, snacks are put in the rooms for guests, which is more than welcome for budgeting backpackers! Dorm rooms are separated into male and female dorms, while private studio and ensuite rooms are also available.

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2. Penny’s Accommodation

An old-school guesthouse, Penny’s Accommodation is similar to a hostel but with private rooms instead of dorm rooms. The budget accommodation is just a 10-minute walk from the city centre and offers a range of rooms with communal bathrooms, lounge and kitchen. Stay in either a single, double, twin or triple room with classic yet clean furnishings. WiFi is complimentary (although, it isn’t always working), as is the on-site parking.

5 Best Backpacker Hostels in Palmerston North© Penny's Accommodation

3. Palmerston North Holiday Park

Another backpacker budget accommodation in Palmerston North is the Palmerston North Holiday Park. It’s the only holiday park in Palmerston North and offers cabins, flats, powered sites and tent sites at budget prices. However, linen is not provided so you will need to bring your own or a sleeping bag. For alternative budget accommodations like this, check out the 10 Best Budget Accommodations in Palmerston North.

Palmerston North Holiday Park© Palmerston North Holiday Park

4. Warm on Waterloo

Another style of accommodation that we could recommend to backpackers, considering how limited your options are in Palmerston North, is a homestay. Warm on Waterloo offers two affordable guest rooms with rates for solo travellers available. Knowing that you’re getting a private room with breakfast included, plus access to a fully equipped kitchen and the opportunity to stay with welcoming locals, the homestay provides awesome value for money.

Check Warm on Waterloo out:

5 Best Backpacker Hostels in Palmerston North© Warm on Waterloo

5. Foxton Beach TOP 10 Holiday Park

Now that we have already exhausted the backpacker accommodation in Palmerston North, let’s end with a great backpacker accommodation outside of the city. Foxton Beach is famous for kite surfing and kite landboarding – it’s a beach lover’s playground. The Foxton Beach TOP 10 Holiday Park has affordable cabins, self-contained units, powered sites and tent sites for campers! Foxton Beach is about a 35-minute drive from Palmerston North.

Check Foxton Beach TOP 10 Holiday Park out:

5 Best Backpacker Hostels in Palmerston North© Foxton Beach TOP 10 Holiday Park

[UPDATE] Massey Manawatu Halls

[Update: Massey Manawatu Halls is no longer open to visitors].

Thanks to all the student accommodation around Palmerston North, some student accommodation is open to backpackers, like Massey Manawatu Halls. They offer budget single rooms with communal facilities you would expect in a hostel, like a kitchen, as well as a barbecue area. Plus, there’s onsite parking. Be aware that linen needs to be hired from reception.

[CLOSED] Pepper Tree Hostel

Stay in this 100-year-old villa with plenty of space and friendly hosts. The Pepper Tree Hostel has all the essential facilities for backpackers including a spacious kitchen. There are even some old-school touches like a piano, book exchange, board games and more. It’s like staying at your grannie’s! This is a BBH hostel for members to benefit from a discount.

More About Hostels in Palmerston North

That’s it for our list of the best hostels in Palmerston North, but it’s by no means the end of our advice! Check out more guides to help you plan the perfect trip to Palmerston North:

Finally, if there’s anything we’ve missed, you’re likely to find it in The Guide to Palmerston North on a Budget and Palmerston North – Guide for Backpackers.


The information in this guide has been compiled from our extensive research, travel and experiences across New Zealand and the South Pacific, accumulated over more than a decade of numerous visits to each destination. Additional sources for this guide include the following:

Our editorial standards: At NZ Pocket Guide, we uphold strict editorial standards to ensure accurate and quality content.

About The Author

Robin C.

This article has been reviewed and approved by Robin, who is the co-founder of NZ Pocket Guide. With more than 15 years of experience in the New Zealand tourism industry, Robin has co-founded three influential tourism businesses and five additional travel guides for South Pacific nations. He is an expert in New Zealand travel and has tested over 600 activities and 300+ accommodations across the country.

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