This friendly hostel in a remodeled historic building enjoys an unbeatable downtown location, only steps from leafy Plaza Cagancha and the bus stops for Montevideo's bus station and beaches. Six spick-and-span four- to 10-bed dorms surround a welcoming, high-ceilinged common area with guest kitchen, pool table and TV lounge. Other pluses include friendly owners and on-site bike rentals.
Feeling frisky? Try on one of the official 'Caballo Loco' horse heads and snap a picture for the hostel's Facebook page.