Over the years, the small town of Banos in central Ecuador has grown into one of the country's most popular stops for backpackers. Local business owners have taken note, and the best hostels in Banos have adapted to accommodate the influx.

With its forested mountain trails, waterfalls, thermal springs, and proximity to the Amazon, the once lively Tungurahua Volcano, Banos has plenty to offer backpackers in Ecuador. Here, we'll guide you to some of the best hostels in Banos.
Table of Contents
Quick Recommendations
- Quiet Night — Hostal Athene Moon
- Social Atmosphere — Papachos Hostel
- Partying — Erupcion Backpackers
- City Entertainment — Erupcion Art Hotel & Hostel
- Cheap Stay — Community Hostel Banos
See also: Cost of Travel in Ecuador
Best Hostels in Banos
Let's get on with the search. Below, we have highlighted some of the best hostels in Banos, Ecuador.
Best Hostel for a Quiet Night — Hostal Athene Moon in Banos
From $9 for a dorm (12 beds) - Located only two blocks from the main square, Hostal Athene Moon in Banos is right in the thick of all the action. However, despite being located in a busy place, the hostel remains an excellent place for a good night's rest.
The owners, Freddy and Dario, are kind people who are always willing to help you plan and book the rest of your trip to Banos and beyond.
Hostal Athene Moon is a unique hostel because it doubles as an art gallery. It is filled with local and international works in various forms, such as paintings and sculptures. It's close to everything, the hostel is clean and quiet, and great people run it. What more could you ask? Check availability: Hostelworld.
Best Hostel for Social Atmosphere — Papachos Hostel
From $8 for a dorm (6 beds) - Papachos Hostel is one of our favorites in Banos. Its rooftop restaurant and terrace offer an astounding view of the mountains, waterfalls, and city, and provide top-notch service.
With a fully equipped kitchen, ping-pong table, movie and BBQ nights, bike rentals, and more, Papachos is the place to be. Plus, breakfast is included every morning at no extra charge.
They have a friendly social atmosphere, whether you're there long-term learning Spanish or just passing through. They make everyone feel at home! Check availability: Hostelworld.
Best Hostel for Partying — Erupcion Backpackers
From $7 for a dorm (7 beds) - Located just two blocks away from Banos's most popular bars and clubs, Erupcion Backpackers is the place for partiers visiting Banos.
With a lounge and courtyard open 24/7 and fun nightly activities planned for guests, this is a great hostel to share a few beers (or more) with fellow backpackers before hitting the town together.
It offers an outdoor patio and common area for socializing, and Erupcion also has an in-house theater (with Netflix) for your viewing pleasure. Rest up at the end of a long day with a movie night!
There are also hammocks scattered throughout the hostel. So, grab a good book and kick back! Erupcion can help you book your next tour, boasting the lowest prices in town and offering bike rentals. Check availability: Hostelworld.
See also: Ecuador Nightlife – Bars, Clubs, and Dating Tips
Best Hostel for City Entertainment — Erupcion Art Hotel & Hostel
From $8 for a dorm (6 beds) - Erupcion Art Hotel & Hostel gets our pick for best in entertainment because of the many things happening there. If you aren't on the rooftop socializing under the sun or stars, perhaps you're dining at the traditional Ecuadorian restaurant in the hostel.
Get a local taste not only in the restaurant but also in your room, where local paintings and photographs by residents of Banos hang on every wall.
Build your itinerary from a wide selection of tours and day trips offered at reception. At the end of a long day exploring, you can also relax with a good book or board games.
If the in-house entertainment isn't enough, Erupcion Art Hotel & Hostel also faces the main square in Banos, with plenty of bars around the corner. Check availability: Hostelworld.
Best Cheap Hostel — Community Hostel
From $9 for a dorm (6 beds) - You have probably heard about the Community Hostel in other cities around Ecuador. It is one of the country's most (if not the most) popular hostel chains.
It's known for its service and high standards to its customers, and in Banos, you should expect no difference. It is always good to know there is an affordable place to stay with such a good name among the backpacking community in Ecuador.
You might stay here longer than expected while preparing for mountain/jungle treks and adventures. Check availability: Hostelworld.
Conclusion
Are you looking for the best mountain hiking, biking, rafting, and partying all in one town? Banos is your place. The best hostels in Banos make it easy to meet other travelers, go on daytime adventures with them, and party it up by nightfall.