Cape Town is one of the most captivating cities in the world. Whether you’re hiking Table Mountain, sipping coffee at a café on Kloof Street, or simply relaxing on Camps Bay Beach, it’s impossible not to be impressed by the city. But let’s face it—traveling can be expensive, and if you’re like me, you’d rather invest your money in an experience than a short-term accommodation. That’s why I’ve put together this guide to cheap accommodation in Cape Town under R500. Don’t worry, you won’t have to spend a fortune to enjoy this beautiful city.
Why Cape Town is Great for Budget Travelers
Cape Town is a dream destination for budget travelers. Why? Because it has it all:
- Beautiful places
- Vibrant culture
- Plenty of free or affordable activities
Where else can you:
- Hike mountains for free
- Visit world-famous beaches
- Explore historic sites without breaking the bank?
Plus, with the country’s booming number of affordable accommodations, you can find a great place to relax without overspending.
Benefits of Cheap Hotels
Let’s face it: when you’re traveling, hotels are just places to:
- Sleep
- Shower
Fancy hotels are nice, but do you always need:
- A minibar?
- Clothes you won’t use?
Cheap hotels offer the basics:
- Clean rooms
- Wi-Fi
- Maybe breakfast
What you save can go toward experiences like:
- A wine tour in Stellenbosch
- A cruise on the Atlantic Seaboard
Cheap Accommodations in Cape Town Under R500
1. City Centre Accommodation
- Accommodation Name 1:
Located just off Long Street, this is a great place to explore the city at night. I came here on my first solo trip to Cape Town, and although the accommodation is small, it is clean, comfortable, and has the best staff. At R450 per night, it’s a great deal. - Hostel Name 2:
Near Greenmarket Square, this amazing spot is perfect for shoppers and culture lovers. After a day of exploring and holding so many souvenirs, I thought, “This is life.”
2. Affordable Beachfront Resort
- Hostel Name 3:
Beach lovers will enjoy this place near Muizenberg. It’s basic, but who cares when you’re right by the beach? - Hostel Name 4:
Located in Bloubergstrand, this spot offers amazing views of Table Mountain rising above the beach. I stayed here during a weekend trip and couldn’t stop taking pictures.
3. The Roadside Hostel
- Hostel Name 5:
Situated just off the Obz (Observatory), this is perfect for a quiet getaway. I stayed here during a business trip and loved the peaceful atmosphere. - Hostel Name 6:
In the Gardens area, this hostel is close to the famous Kloof Street restaurant. Sitting in the garden with a glass of wine, watching the world go by, is pure bliss.
4. The Solo Traveler Hostel
- Hostel Name 7:
Popular among solo travelers, this hostel in the heart of the city is perfect for meeting people. I met amazing friends and explored the city together. - Hostel Name 8:
Located on Long Street, this hostel is a vibrant and social choice. You might end up with some interesting stories to tell!
Cape Town Budget Tips
Here’s the thing: finding a bargain isn’t just about convenience—it’s about strategy.
Tips to Save Money:
- Plan ahead:
Avoid last-minute bookings to prevent overspending. - Go during the off-season:
Winter in Cape Town is quieter and cheaper, with beaches almost to yourself. - Use a comparison site:
Platforms like Booking.com and Airbnb are great for finding deals.
What to Expect from a Cheap Vacation Rental
Cheap vacation rentals won’t offer:
- Chandeliers
- Pools
But they should provide:
- A clean, comfortable room
- Basic amenities
Pro Tip: Always read the description before booking to avoid surprises. A little research can save you from unnecessary hassle.

I’m Wendy, I live abroad for about 3 years and I have done two long term travels before I relocated. If you want to lead an active life while traveling or living abroad, you came to the right place! On my blog you find practical articles on what it is like to live abroad and tips on awesome travel destinations.