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Lisbon is the world's hostel capital, regularly dominating annual awards for the very best of this type of accommodation. Among those always riding high in the rankings is Traveller's House, a backpacker classic since it opened in 2006 in a 250-year-old block on the Rua Augusta, in the heart of the downtown Baixa neighborhood. For a cheap party vibe, grab a bunk in one of the brightly colored dorms. Those looking for more privacy can choose en-suite rooms or one of four studios that offer all the charms of a fancy boutique hotel—including azulejos and exposed woodwork built after the 1755 earthquake. The place is relaxed and fun, with the cozy lounges filled with comfy sofas and beanbags for chilling. Travellers House also hosts regular events,  from Portuguese wine-tasting to Segway trips around the city. The cool staff seek to make your stay feel like crashing at a friend's place—except that the rooms are actually clean and comfortable, the bed linens crisp, and there's a free breakfast waiting in the morning.