From stylish hostels to iconic hotels: where to stay in the world’s best cities for 2026

Time Out has revealed its Best Cities for 2026, celebrating the places locals genuinely love living in.

Heading to one of those places? Here’s where to stay, from budget-friendly Generator to mid-range comfort, in these cities that made the top 10 list.

1. Melbourne, Australia

According to Time Out, Melbourne consistently ranks among the world’s most liveable cities, and it’s easy to see why. World-class food, sports, and culture meet a laid-back lifestyle that locals fiercely love. In the city’s famous laneways, you’ll find indie coffee shops, street art, hidden cocktail bars, and restaurants serving everything from late-night noodles to award-winning fine dining. Add galleries, festivals, leafy gardens and the Yarra River, and Melbourne feels endlessly creative and exciting to explore.

Budget: Space Hotel Melbourne. Costing approximately £30–£80 per night, it is a stylish backpacker hostel with rooftop views and private rooms close to Melbourne’s buzzing CBD.

Mid-range: QT Melbourne. Costing approximately £200–£300 per night, this design-led boutique hotel is known for its rooftop bar and playful interiors.

2. Shanghai, China

Shanghai never stops moving. Colonial-era architecture rubs shoulders with futuristic skyscrapers, while fashion, food and culture constantly reinvent the streets below. Boasting more cafés than any other city, it’s the hub of style and innovation. International brands, creative chefs, and new cocktail bars pop up ever so often, with a sense of affordability making it surprisingly accessible. As visa restrictions ease, Shanghai is undeniably emerging as one of Asia’s most exciting cities to explore right now.

Budget: Meego Youth Hotel. Costing around £35–£80 per night, this is a modern hostel popular with young travellers exploring Shanghai’s vibrant nightlife and food districts.

Mid-range: The Middle House. A stay costs between £260–£350 per night in this sleek urban retreat, in Jing’an blending contemporary architecture with serene minimalist interiors.

3. Edinburgh, United Kingdom

Edinburgh feels like a city built for storytelling. The Scottish capital is renowned for its literary heritage, dramatic architecture and thriving arts scene. In summer, the city transforms during the Edinburgh Festival Fringe, when thousands of performers take over theatres, pubs and pop-up stages. Outside festival season, there’s still plenty to explore, from historic pubs and independent shops to innovative restaurants in neighbourhoods like Leith and Stockbridge. Despite its grandeur, Edinburgh is compact and walkable, letting visitors explore centuries of history on foot while discovering new galleries, cafés and creative spaces along the way.

Budget: High Street Hostel. A stay here costs approximately £15 - £80 per night. Here is a sociable, budget-friendly Old Town hostel popular with backpackers.

Mid-range: The Resident Edinburgh. Staying in this calm boutique hotel with apartment-style rooms inside a Georgian townhouse costs £170–£280 per night.

4. London, United Kingdom

London remains one of the world’s most exciting cities, thanks to its incredible variety of experiences. In a single day, you can explore centuries of history at the Tower of London, browse contemporary art at Tate Modern, catch a West End show and finish with dinner at one of the city’s newest restaurants. London’s parks provide breathing space amid the city’s energy, while neighbourhoods such as Shoreditch, Soho and Notting Hill each bring their own personality. From food markets and galleries to rooftop bars and festivals, London offers an ever-changing mix of culture, creativity and nightlife that keeps visitors coming back.

Budget: Generator London. Costing £35–£120 per night, this is a lively design-forward hostel in Bloomsbury near the British Museum.

Mid-range: The Hoxton Holborn costs between £220–£350 per night. It is a creative hub hotel popular with London’s media and design crowd.

5. New York, United States

New York, historically known as the city that never sleeps – and for good reason. From Broadway theatres and world-class museums to late-night diners and rooftop cocktail bars, the city’s energy never lets up. Each of its five boroughs brings a unique culture and personality, from Brooklyn’s creative neighbourhoods and Manhattan’s iconic skyline to Queens’ global food scene. Infrastructure upgrades, including new airport terminals, modernised subways and faster trains, make exploring easier than ever. Meanwhile, new restaurants, exhibitions and cultural events continue to cement New York’s reputation as one of the world’s most influential cities.

Budget: Paramount Times Square - A Generator Hotel. Costing approximately £50–£180 per night, this place is a social design hotel in Williamsburg with skyline views and rooftop bars.

Mid-range: The Standard High Line. Staying here costs around £350–£500 per night, but you get to rest in a trendy Manhattan hotel perched above the High Line park.

6. Cape Town, South Africa

Framed by the flat, towering summit of Table Mountain and bordered by golden beaches, Cape Town combines extraordinary natural beauty with a fast-evolving food and culture scene. The waterfront districts buzz with new restaurants, creative hospitality projects and cultural venues, while nearby neighbourhoods like Kalk Bay and Woodstock offer independent cafés, galleries, and markets. Beyond the city, the Cape Winelands is just a short drive away, with vineyard views, award-winning restaurants and scenic countryside. Whether visitors come for coastal hikes, wine tasting or world-class sunsets over the Atlantic, Cape Town offers a travel experience that’s both adventurous and relaxed.

Budget: Never@Home Green Point. A vibrant hostel with a rooftop pool and bar near Cape Town Stadium that costs £25–£70 per night.

Mid-range: The Silo Hotel. This design-led boutique hotel set inside a converted grain silo overlooking the V&A Waterfront costs around £350 per night.

7. Mexico City, Mexico

Mexico City is one of the world’s most dynamic cultural capitals, blending ancient heritage with contemporary creativity. Visitors can explore Aztec ruins, wander world-class museums dedicated to artists like Frida Kahlo, and dine at restaurants regularly featured in global culinary rankings. Neighbourhoods such as Roma and Condesa attract artists, chefs and designers, with leafy streets, independent galleries and innovative cocktail bars. As a host city for the 2026 FIFA World Cup, Mexico City is gearing up for an exciting year of cultural events and international attention.

Budget: Selina Mexico City Downtown. This costs between £30–£90 per night, and you would stay in a lively hybrid hostel with co-working spaces and rooftop bar.

Mid-range: Casa Polanco. To stay in this stylish boutique hotel in the leafy Polanco neighbourhood costs around £280 per night.

8. Bangkok, Thailand

Bangkok is a city of contrasts, where centuries-old temples sit beside futuristic skyscrapers and neon-lit nightlife districts. The Thai capital is famous for its street food culture, from sizzling woks in Chinatown’s Yaowarat district to floating markets and hidden neighbourhood restaurants. At the same time, Bangkok has become a hub for contemporary art, fashion and design, with new galleries, creative spaces and rooftop bars constantly appearing across the city. Whether visitors come for food, culture or nightlife, Bangkok offers a sensory experience like no other.

Budget: Lub d Bangkok Siam. Costing around £25–£70 per night, this social hostel is known for its design, interiors and central location.

Mid-range: Hotel Muse Bangkok. Boutique-chic stay with Art Deco flair, a rooftop pool, and skyline views in central Bangkok, costing around £200 per night.

9. Seoul, South Korea

Seoul constantly reinvents itself while celebrating its rich cultural heritage. Visitors can explore historic palaces and traditional markets before discovering cutting-edge fashion districts, design studios and experimental restaurants. The city’s food scene has captured global attention, with innovative bakeries and cafés joining legendary barbecue spots and street food vendors. Seoul’s cultural offering continues to grow, with new museums, galleries and creative hubs opening across the city. From cherry blossom season in spring to lively summer festivals and cosy winter markets, Seoul offers a vibrant city-break experience all year round.

Budget: Step Inn Myeongdong. Costing approximately £30–£70, this is a simple but stylish hostel in one of Seoul’s busiest shopping districts.

Mid-range: RYSE Hotel. Staying in this creative lifestyle hotel popular with artists and musicians costs approximately £190 per night.

10. Tokyo, Japan

Tokyo is one of the world’s most fascinating cities, where centuries-old traditions coexist with cutting-edge technology and design. Each neighbourhood has its own personality, from the bookshops and vintage cafés of Jimbocho to the fashion boutiques and nightlife of Shibuya and Shinjuku. Food lovers come for everything from Michelin-starred dining to late-night ramen counters and bustling street markets. Seasonal events shape the city’s rhythm, with cherry blossom viewing in spring and vibrant summer festivals drawing crowds. With its unmatched mix of culture, cuisine and creativity, Tokyo remains one of the most exciting destinations in the world.

Budget: Book and Bed Tokyo is a unique “sleep in a bookstore” hostel concept loved by design travellers. Staying here costs between £40–£90 per night.

Mid-range: Trunk Hotel. This costs around £300 per night, and you would stay in a fashionable boutique hotel in Shibuya known for its minimalist design.