Luxembourg City's state-of-the-art hostel has 240 beds in 50 very comfortable, single-sex dorms with electronic entry. En suite dorms cost €1 more. There are good-sized lockers (bring a padlock), laundry facilities and loads of space including a great terrace with views to the Old Town. Rates include a basic breakfast. HI members receive a discount.
It’s a short but steep walk down from the Casemates area via stairs near ‘Clausen Plateau Altmunster’ bus stop. The hostel's cafe serves a decent two-course dinner for €10.90.