7 Budget Stays In Dharamshala

The Tibetian influence can be felt everywhere in Dharamshala and it has become one of its attractions. If you’re looking for a break from your daily life, a deep dive into a different culture, or a treasure chest of serene moments, Dharamshala will never disappoint. Good times can be had here without breaking the bank, just follow this handcrafted list of our favorite budget stays in Dharamshala and you are set.

Top 7 Affordable Stays In Dharamshala

  1. Hotel Holiday Hill
  2. The Ballu Homestay
  3. Nandini Villa
  4. Hotel Sky Pie
  5. Varuni Mcleodganj
  6. Mcleodganj Bed And Breakfast
  7. Green Hotel

1. Hotel Holiday Hill

This premium property is conveniently located just a short walking distance from the bustling market area. One of the most popular temples in the country, the Dalai Lama Temple, is also nearby and so is the Bhagsu waterfall. So it’s safe to say that you’d be at a prime location.

This two-story hotel is also the perfect resting spot for those who are looking to get all of the necessary modern amenities with a luxurious touch at an affordable price. It carries a rating of three stars, you don’t worry about the room charges being too high. Apart from being close to many of Dharamshala’s top locations, this hotel also offers great views of the mesmerizing Dhauladhar Mountains and Triund Hills. You will feel deeply connected with nature here while still being close to the happening streets and areas of this city. 

Food Availability: Tibet Kitchen, Jimmy’s Italian Kitchen, The Clay Oven Restaurant, Nick's Italian Kitchen and Mcllo Beer Bar and Restaurant are some great restaurants to check out near the property.

Accessibility: The nearest airport is Kangra Airport, 17 km away from the accommodation. McLeod Ganj bus stop is just 850 meters away from the hotel.

Ideal For: Solo trips, friends and families.

Pet Friendliness: N/A

Rate: The rooms start from INR 2,800.

Location: Jogiwara Road, Dharamshala.

Also read: Himachal Pradesh Travel Guide

7 Budget Stays In Dharamshala

2. The Ballu Homestay

This is a stay like no other and is sure to give you a detox from city life. Just like Dharamshala, it also carries an interesting history. This mud house was constructed all the way back in 1903! It was home to a matriarch named ‘Balu.’ Even though this house has been standing for more than a hundred years, its old rustic charm has not faded even a bit. 

While it doesn’t have all the modern facilities, we can ensure you that you won’t miss them at all. Its humble old furniture, basic lighting and vintage-style colors on its walls come together to create a warm and welcoming aura. The house is a great vantage point for the Dhauladhar range and is literally a stone's throw away from a fresh stream of water.

Note: The toilets are situated outside the homestay and are not inside the rooms. Consider it as one of the quirks that come with a house that is more than a century old.

Food Availability: It strives to offer the best of simplicity even with it comes to food. Guests have to place orders in advance and they can expect to be treated with lip-smacking homemade delicacies made using locally sourced ingredients. Several other restaurants are also available nearby like Pepper N Salt Restaurant Dharamshala, Taste Of Tibet, Bhagsu Fast Food, and Satyam Family Restaurant

Accessibility: The nearest airport is Kangra Airport, 12.3 km away from the accommodation. The nearest bus station is Sheela Chowk 1 km.

Ideal For: Families and friends.

Pet Friendliness: You can bring your furry friends here. It is pet-friendly.

Rate: The rooms start from INR 1,900.

Location: Near Sheila Chowk, Dari, Dharamshala.

Also read: Best Places For Camping In Himachal Pradesh

3. Nandini Villa

Dharamshala has no lack of great budget stays and the Nandini Villa is one of them. This magnificent villa offers a panoramic view of the Dauladhar mountains. Located around 10 mins away from the ever-popular HPCA Stadium, this abode is packed with tons of modern amenities to comfort you without hurting your pockets. The villa operators aim to provide ‘A Home Away from Home’ experience to their guests and they put in a ton of effort. One unique offering is the choice of attached kitchens as well as a community kitchen for those who prefer to cook their own meals. 

The wide choice of rooms available provides added flexibility so there won’t be any issues if you’re traveling alone or with your loved ones. Soak in some interesting historical facts and a heavy dose of arts and culture at the famous Tibet Museum and Kangra Art Museum which are also located at a convenient distance from the villa.

Food Availability: Vinod Chat Bhandar, Monal Restaurant and Rajinder Vaishnav Dhaba are some good restaurants that are at a reasonable distance from the accommodation.

Accessibility: The nearest airport is Kangra Airport which is 14 km. Inter State Bus Terminal Dharamsala which is 2.8 km is the nearest bus station. 

Ideal For: Families, friends, couples and solo travelers.

Pet Friendliness: Pets are allowed here.

Rate: Rooms start at INR 2,500.

Location: Near Lower TCV school, Ram Nagar, Dharamshala.

Also read: Places To Go Glamping In Himachal Pradesh

7 Budget Stays In Dharamshala

4. Hotel Sky Pie

This is one of the cheapest options on our list, but it still manages to pack more than the necessary amenities to make your stay a fun one. From room service and a swimming pool to a fitness center and laundry service, this one is truly a great deal. No matter which room you take, your balcony will offer you a breathtaking view that will stay with you for years to come. It’s one of the best advantages of being in Dharamshala! 

Make plans to visit the picturesque Bhagsunag waterfall and Tsuglagkhang Complex Dalai Lama Temple which is located near the hotel. Another interesting addition to your itinerary can be a visit to the esteemed Tibetan Institute of Performing Arts which is known for its entertaining shows like live concerts, operas, and more.

Food Availability: Try some of the delicacies at Hotel Sky Pie’s restaurant as they have received raving reviews from the guests. Some other nearby options are Family Pizzaria, Welcome Cafe, Sandy's Kitchen, and Chilly Beans Cafe.

Accessibility: Kangra Airport is at a distance of 24 km and it is the nearest airport. The nearest bus station is Dharamshala bus stop and it is 6.5 km away.

Ideal For: Friends and families. 

Pet Friendliness: Pets are not allowed here.

Rate: The room starts from around INR 1,000 to INR 1,300.

Location: Opposite Vaishno Devi temple, Bhagsu Nag.

Also read: Experiencing The Food In Dharamshala

5. Varuni Mcleodganj

This one is backpacker’s dream come true as it is not just easy on your wallet but also located near many interesting gems of Dharamshala. Treat your spiritual side at the famous Namgyal Monastery and Dalai Lama temple. Experience the serene water and click some frame-worthy pictures at the Bhagsunag Waterfall and lose yourself in the impressive history of a mighty country at the Tibet Museum. Hotel Varuni’s rooms come with all the basic amenities. We suggest that you pick a room with a balcony as it will offer you a panoramic view of the mountains. 

Food Availability: Its restaurant is known for providing guests with scrumptious meals. You can also try other restaurants such as Vinod’s Rasoi, Park Restaurant, Bhagsu Fast Food, and Shiva Drink & Dine.

Accessibility: Kangra Airport is at a distance of 16.8 km and is the nearest airport. The nearest bus station is the Dharamshala bus stand, which is 3.6 km away from the accommodation. 

Ideal For: Friends, families and solo travelers.

Pet Friendliness: Pets are not allowed here.

Rate: The rooms start from INR 1,000.

Location: Temple Road, near His Holiness Dalai Lama.

Also read: Dharamshala Travel Guide

7 Budget Stays In Dharamshala

6. Mcleodganj Bed And Breakfast

Located amidst the dreamy pine trees and in an area that is blessed with the calmness of a dense forest, but is still connected to several attractions is the Mcleodganj Bed And Breakfast. It is located close to the Bhagsunag Waterfall, Kalachakra temple, Namgyal Monastery and the happening McLeodganj Market. 

Don’t be fooled by its affordable prices, this homestay is a true delight. Just walk into any of its spacious rooms and you will be greeted by the exquisite Thangka (Tibetan Buddhist painting) on its walls. If you want to add a twist to your mini-vacation, you can opt to stay in the well-equipped jungle hut that’s built on its premises.

Food Availability: The hotel’s Taste of India restaurant is its crown jewel and this restaurant’s laurels have been sung not just by its guests but also by many reputable magazines. Some other restaurants in the area are Lung Ta Japanese Restaurant, Trek & Dine, Main Point Restaurant & Cafe, Nick's Italian Kitchen, Mcllo Beer Bar and Restaurant and Jimmys Italian Kitchen in McLeod Ganj.

Accessibility: The nearest bus stop is Dharamshala bus stand which is 5.3 km away. The nearest airport, Kangra Airport, is around 23 Km away.

Ideal For: Couples and friends.

Pet Friendliness: Pets are not allowed here.

Rate: The room rates start from INR 1,400.

Location: Flourishing Flora, Dharamkot Road, opposite TIPA Gate.

Also read: McLeodganj Travel Guide

7. Green Hotel

Our final pick has been a part of Dharamshala’s history since 1978. This budget stay is located at just walking distance from the McLeodganj Bus Station and a short drive away from the McLeodganj Market, Bhagsunath Temple, Tibetan Museum, Tibetan Institute of Performing Arts and more such interesting venues. 

This hotel has been praised by several established online publications and now we are here doing the same! Even while being a budget-friendly hotel, it doesn’t skip on the basic amenities. 

Food Availability: Its restaurant is known for serving traditional Tibetan breakfasts and other mouthwatering delicacies. Kalimpong Restaurant, Mcllo Beer Bar and Restaurant, Jimmy’s Italian Kitchen in McLeod Ganj and Tibet Kitchen are some of the great restaurants here.

Accessibility: The nearest bus station is 450 meters away, it is the McLeodganj Bus Station. Kangra Airport is the nearest airport and it is 22.6 km away.

Ideal For: Friends, families and solo travelers.

Pet Friendliness: Pets are not allowed here.

Rate: The room rates start from around INR 1,300.

Location: Bhagsu Road, McLeod Ganj.

Also read: Best Hostels In McLeodganj For The Backpacker

7 Budget Stays In Dharamshala

Summing Up

We’ve already disclosed some of your best budget options so that your trip to Dharamshala is a luxury you can take on. So go ahead with your plans to explore Dharamshala because it's going to be an absolute treat! It will most certainly offer you so much and asks for very little in return. 


Is Alcohol Allowed In Dharamshala?

Yes. Dharamshala is located in the state of Himachal Pradesh which is not a dry state. So purchasing and consuming alcohol is allowed for people over the age of 18.

What Clothes To Wear In Dharamshala?

Wear warm clothes. Even if you are going in summer, it would be advisable to have warm clothes with you as the city is prone to rapid changes in temperature.

What Is The Famous Food Of Dharamshala?

The city is deeply rooted in Tibetian culture so most of the famous food here is Tibetian. Some great examples are thukpa, momos, tudkiya bhat, dhaam and madra.

Which Is The Best Month To Visit Dharamshala?

You can visit it during any month of the year and have a great time. But the period from December to February is considered the best time to visit because this is when it is snowing here.

Are 2 Days Enough For Mcleod Ganj?

No. We would advise you to spend at least 5 days here so that you can visit the most popular places without worrying too much about the time.

Is It Better To Stay In Dharamshala Or McLeod Ganj?

McLeod Ganj is a part of upper Dharamshala and it has more popular places as compared to the rest of Dharamshala. This is why McLeod Ganj has become a tourist hub. The rest of Dharamshala is comparatively quieter, less crowded, and less commercialized. So it ultimately comes down to your preference whether you want to stay in a calmer space or a slightly upbeat one.

Can You Visit Dalai Lama In Dharamshala?

Dalai Lama holds lectures at Namgyal Monastery in Mcleod Ganj and they can be attended by anyone. You will have to register in advance at the Central Tibetan Administration's Branch Security Office located at Bhagsunath Road, Mcleod Ganj. Do note that you have to pay for your registration which begins a few days before the lectures. The timings for signing up are 9 am to 1 pm and 2 pm to 5 pm.