Modern, clean and very welcoming, this excellent independent hostel is Caernarfon's best-value sleep. A 14th-century arch gives a sense of history to the communal kitchen in the basement (it may once have been a street-level entrance) and continental breakfast is free. There are small dorms and doubles, a two-bed attic apartment, a TV room and a book-swap library.
Over the road is a second property, sleeping up to six, which can be rented entire for £120 per night.