Albergue Juvenil: Canelones 935. Nice HI-Hostel close to the center. With kitchen and internet access.
Unplugged Hostel: Luis de la Torre 930. Located in Pocitos, one of the nicest and safest neighborhoods of Montevideo, just a few blocks away from its famous coast. Dorms from US$12
Hotel Arapey: Ave Uruguy 925. Rambling art deco relic with large rooms and linens as old as the building. Private bath, fans, TVs, elevator. US$32/38 single/double.
Ciudad Vieja Hostel: Ituzaingó 1436. Located near the historical heart of the city and in the middle of Montevideo's nightlife. Free breakfast, internet, kitchen access. Dorms from US$11.
Red Hostel: San Jose 1406. A hostel set in a renovated colonial home built in 1912. Typical hostel traffic, but very nice staff who like to hang out with their friends late at night on the hostel roof.
Pocitos Hostel: Av. Sarmiento 2641. In nearby Pocitos, a beach suburb ,is a purpose built hostel with free breakfast, internet, kitchen, fireplace, backyard and the most friendly and helpful staff. They have bicycles for hire, don't miss the bike ride from Pocitos to Carrasco (45 minutes) or Pocitos to Escollera, Old Town, 20 minutes. Dorms from US$ 12.