7 Budget Stays In Palampur

This pristine little hill station in the lap of Kangra Valley is home to lush tea estates, colonial architecture, and ancient temples. Palampur, Himachal Pradesh is a paradise for photographers, a happy place for vacation goers, and a hub for adventure seekers. Places in and around Palampur are popular for hang-gliding, hiking, and trekking. You can spend a week in Palampur and still not get your fill of this gorgeous hill station near the Dhauladhar range.

Before you start wondering where to stay in Palampur, let us tell you that there are many 5-star resorts, 3-star hotels, homestays, and guesthouses in Palampur. We’ve picked the best budget stays in Palampur so your trip to Palampur is both affordable and memorable!

7 Budget Homestays In Palampur

  1. Kantas Riverside Homestay
  2. Moonlight Guest House
  3. goSTOPS Palampur
  4. Nithya Village Homestay
  5. Anavrin Homestays And Apartments
  6. Hotel Holiday Home
  7. The Mudhouse Cafe & Hostel

Kantas Riverside Homestay

This bright green homestay looks inviting and homely from a distance, go near and you’ll be greeted with the tempting aroma of hot food. It’s simply perfect for families who are looking for affordable accommodation in Palampur. The location of Kantas Riverside Homestay is worth a mention; it’s just 950 meters from the center of Palampur which means you’ve all the amenities nearby!

There’s a lush green garden where you can sip your morning tea while listening to the sound of a stream nearby. A short walk away you’ll come upon a clearing where the Neugal Khad flows, you’ll love this place if you’re a pebble collector! Don’t forget to stand on the Neugal Khad bridge and take in the breeze! This homestay is perfect if you’re looking for an undisturbed quiet stay in Himachal Pradesh, partying isn’t allowed so the only thing you hear is the wilderness.

As for families with children, there’s a play area in the homestay so the only thing that needs attention is your peace of mind! When dusk falls, you can enjoy the view from the terrace and treat yourself to a home-cooked local meal. Mornings at this homestay treat you to a healthy vegetarian breakfast but if you seek something fancier, head over to the Neugal Café a short drive away!

Location: Trail to Neugal Cafe, 176061 Palampur, India.

Perks: Free private parking, heating, fridge, and kitchenware.

Costs: Starting from INR 1,100 onwards.

Also Read: Top 7 Things To Do In Himachal

Moonlight Guest House

This is the perfect accommodation for you if you’re looking for a place near the market premises. The Palampur bus stand is a stone’s throw away from this guesthouse. You’ll find local buses from the bus stand that take you to the tourist spots you plan to visit. Step out in the evening and see the local market in full swing. You can shop for Tibetan handiworks, handloom shawls, and local artifacts from this market.

As for the guesthouse, it’s very comfortable for families and bachelors alike. The rooms are spacious and the food is lip-smacking! You can also ask the manager for a dormitory room if you’re a solo traveler looking for an affordable stay in Palampur. Go ahead and make friends with the staff if you want to hear interesting local stories and information about offbeat places in Himachal Pradesh.

The Moonlight Guest House is often booked out during the tourist season between September to June so it’s better you book in advance! Also, remember to call up the reception a few hours before your arrival so you enter a clean, fresh room when you check-in. The rooftop is open to all and you can see the bustling Palampur town from up there, so check it out before you check out!

Location: Opposite H.R.T.C complex, near new bus stand, Palampur, Himachal Pradesh 176061.

Perks: Full-service laundry, open kitchen, 24-hour front desk.

Costs: Starting from INR 700 onwards.

Also Read: Himachal Pradesh Travel Guide

goSTOPS Palampur

This is one of the best and the only backpacker hostels in Palampur. The vibe and ambiance of this hostel in Palampur will make sure you have a great trip. Like all other goSTOPS hostels in India, this one too gives you great views both outside and inside! The Palampur bus stand is just 15 mins away from this goSTOPS property.

The scenic Neugal Khad Bridge is very close to the hostel, hike to this spot in the morning for unparalleled views. Spending your Palampur days in this hostel is a crazy amount of fun because of the number of activities the hostel offers. You can sit around the campfire, laze in the common lounge, watch a rom-com on the projector, or simply bask in the views of the faraway Dhauladhar range. The staff at the hostel is super friendly and ever-ready to entertain new faces of people and pets! Yes, you can get your little friend along in this hostel!

Bring your friends along and have a blast at this hostel or come alone and make new friends, it’s all up to you! With beautiful mountains, rivulets, and widespread tea gardens, Palampur is among the best places for a workation in Himachal Pradesh. This hostel makes your workation all the more successful with high-speed internet connectivity and comfortable workspaces! Crash in any time at this hostel and there’s always warm company waiting for you with hot cups of tea in their hands. Hostels like these are perfect if you’re going hill station hopping in the Himachal!

Location: goSTOPS Palampur, Tank Road, Bundla, Palampur, Himachal Pradesh 176061.

Perks: High-speed Wi-Fi, games room, lockers, laundry, 24-hour security.

Costs: Starting from INR 500 onwards.

Website: gostops.com/location/gostops-Palampur/

Also Read: 4 Hostels In Bir That Are A Backpacker’s Paradise

Nithya Village Homestay

This picturesque homestay at the foothills of Dhauladhar ranges is an absolute treat. You can see the mighty white mountains the moment you open your windows! Let the chilly breeze enter and drink those views in with a cup of Kangra Tea served at this guesthouse. The entire place is very welcoming and homely. The meals are cooked with homegrown organic vegetables and taste like an absolute delight! There’s access to the kitchen so you can fulfill your late-night Maggi cravings.

If you love exploring places on foot, then walk away from the main road into the tea gardens and you’ll discover some offbeat trails. If you’ve got a car along, there’s much to see nearby since McLeodganj is 18 km from the homestay while Dharamshala is 20 km away. You can visit the Bundla Waterfalls which is a half-hour drive away from this homestay. If you just feel like chilling at the homestay, do as you please! Wake up to an Asian breakfast or an à la carte breakfast before you embark on your Palampur sightseeing. 

If you’re traveling with kids, the children’s play area will keep them busy. There’s also a little library that will keep young teens engaged! You shouldn’t check out of Nithya Village Homestay without saying goodbye to the most important member of this guest house, the host’s cute dog called Casper!

Location: Vill Lambapat, PO Gopalpur Tehsil, Palampur, District Kangra, 176059 Palampur.

Perks: Outdoor fireplace, shared kitchen, walking tours, indoor play area, newspapers.

Costs: Starting from INR 1,000 onwards

Also Read: 6 Of The Best Hostels In McLeodganj For The Backpacker

Anavrin Homestays And Apartments

If you’re looking for low-key and budget-friendly places in Palampur, Anavrin Homestay is a good option. The humble homestay opens up to the mountains and stands tall against the open sky. The view from its terrace is breathtaking because of the homestay’s proximity to the mountain ranges.

There’s a garden where you can stroll in the evenings and enough space in front of the homestay for parking your car. The stay at this homestay is so peaceful that you’ll feel like chucking your devices and going into a complete detox. There’s a TV at this place if you’d simply like to curl up and watch a movie after sunset.

The home-cooked food found at this homestay is the best way to explore the local cuisines of Palampur (do ask the host to cook some Pahari food for you like the Lungru pakoras).  There’s also an open bar and an open access kitchen, so help yourself! If you’re not coming by your own vehicle, worry not because the homestay provides car rental services too! As for your furry friends, it’s an open house for pets. No charges!

Location: Nagri to Kandi via Rakh, Nagri, Rakh, Himachal Pradesh 176059.

Perks: Free private parking, free toiletries, flat-screen TV, pet-friendly, open garden.

Costs: Starting from INR 900 onwards.

Hotel Holiday Home

This hotel has both family rooms and dorm rooms for solo travelers looking for the cheapest places in Palampur. The bunk beds in the dorm room are well maintained and you can always expect to find some interesting company at this hotel! If you’re a young traveler and worried about safety, you can be completely relaxed here as the hotel assures you complete security with a 24-hour front desk.

The hotel is away from the hustle of Palampur center and the property overlooks a quiet army settlement. Trek upto the small stream near this hotel or ask the host to light you a campfire if you feel like spending a laid-back evening. There’s a lot to explore in this hotel, like their vegetable garden or the rooftop! The meals served at this hotel are wholesome and tasty because of their organic ingredients.

Don’t stop yourself from having a chat with the owner. He’s a retired defence officer and has some interesting stories to share. You’ll be satisfied with the stay, food, and amenities at this budget hotel in Palampur. Have your breakfast in the outdoor dining area as you soak in some morning sunshine and then start exploring Palampur with a full tummy!

Location: PWD Colony, Opposite Hotel Tea Bud Lohna Hills, Palampur, Kangra, 176061.

Perks: Outdoor dining area, electric kettle, free parking, 24-hour front desk.

Costs: Starting from INR 500 onwards.

Also Read: 8 Places To Visit In Himachal During Monsoon

The Mudhouse Cafe & Hostel

This property is exactly what the name suggests, a mud house! You’ll get a full rustic taste of living here. The walls and floor are made entirely of mud and wood, the shelves are built within the walls and the doors too are vintage. You’ll get a feeling like you’ve traveled back in time when you enter this hostel.

This 68-year-old structure is today an offbeat cafe and hostel in Palampur for travelers looking for interesting sights. The huge painting of a Himalayan shepherdess on the mud walls gives this place a lively touch. The view of this mud house standing against the backdrop of white-grey mountains will stick in your mind long after you’ve left Palampur. The travelers you’ll meet at this hostel are as exciting as the place. The entire vibe of this place is energetic. You live, eat and breathe here as a local! 

Not many people know of this place and that’s what makes it more special. You can expect ultimate peace at this hostel and be completely cut off from the chaos of urban life. If you want the real flavor of this rustic hostel, sit cross-legged on the mud floor and eat the Pahari meal with your hands. Your stay will be made completely comfortable by the cafe’s hardworking staff! We’re sure you’ll love the experience of staying here and will come back for it!

Location: Vpo Kandwari, Palampur, Himachal Pradesh 176061.

Perks: Outdoor seating, pet friendly, campfire and music.

Costs: Approximately starting from INR 700 onwards.

Also Read: 6 Best Hostels In Manali That Backpackers Would Love

It’s always preferable to book your stay in advance, you end up saving bucks because of early discounts making your trip much more budget-friendly. Another tip for traveling on a budget in Palampur will be to book a bed in a hostel, it’s much affordable and opens you up to new people! Oh, and before we wish you a safe journey, let us remind you to shop for some top-notch wines in Palampur!


What To See In Palampur?

Tashi Jong Monastery, Saurabh Van Vihar, Neugal Khad, Bajinath Temple, and Bundla waterfall are some of the best places to see in Palampur. Also don’t miss out on touring the Palampur Tea Gardens and Palampur Co-operative Tea Factory!

What To Eat In Palampur?

Try the famous local cuisines of Palampur like Patroda, Braha flower chutney, and Lasiada. Go to Adarsh Bakers and check out their fresh burgers and pizzas and then head over to Neugal Cafe to sip on the famous Kangra Tea.

Which Are The Adventure Sports Around Palampur?

You can go angling and fishing in Dehra Gopipur which is a 2-hour drive from Palampur, go camping in and around Palampur, go paragliding in the nearby Bir Billing region or go trekking or hiking on the trails that lead through the tea gardens.

Which Are The Best Resorts In Palampur?

Infinitea Sports Club & Tea Garden Resort, Araiya Palampur – A Norwood Heights Resort, Rakkh Resort, Himachal Heritage Resort, and Neugal RiverFront Resort are some of the best luxury resorts in Palampur. 

Are There Backpacker Hostels In Palampur?

Currently, the only backpackers’ hostel in Palampur is goSTOPS Palampur. You’ll also find dormitory and bunk bed accommodations in Palampur, but they aren’t dedicated solely to backpackers. You can find many budget deals in Palampur’s guest houses, homestays, and hotels.  

What Are Some Of The Best Places To Visit In Himachal Pradesh?

Shimla, Kullu Manali, Dharamshala, Spiti Valley, Palampur, Kasol, and Mcleodganj are some of the best places to visit in Himachal Pradesh.

Where Is Palampur Situated?

Located at a distance of 35 km from Kangra, Palampur is a small quiet town that has a breathtaking backdrop of the Negul chasm and the Bundla stream.

What Is The Main Activity In Palampur?

When you come to Palampur, you'll notice that farming is a widespread activity in this little town.