Looking for a great place to stay in Newcastle without spending too much? Whether you’re here for the beaches, bars, or just a relaxed getaway, this guide will help you find the best budget hotels in Newcastle.
We’ve researched the top-rated and best-value hotels based on guest reviews, location, comfort, and cost. Whether you’re travelling solo, with family, or as a couple — there’s a perfect stay waiting for you.
Let’s start with a quick guide to help you choose fast
Quick Picks – Best Budget Stays by Category
If you’re in a hurry or already know what kind of trip you’re planning, here are our top picks based on different types of travellers:
Best near the beach: NOAH’s on the Beach
Wake up to ocean views, just steps from Newcastle Beach. According to Expedia, rooms start at around AU$188 per night.
Best for nightlife lovers: Junction Hotel
Stylish rooms above a lively bar in a central location. TripAdvisor guests love the atmosphere, rating it 4.7 out of 5.
Best for solo travellers: ibis Newcastle
Clean, simple, and centrally located. According to Kayak, rooms start from AU$117 per night.
Best for families: Merewether Motel
Spacious rooms, free parking, and a pool. Ideal for family stays. Priced from AU$137, based on Expedia.
Best under $100 AUD: Gateshead Tavern Motel and Shortland Budget Accommodation
These are your best options for budget stays under $100. Gateshead starts at AU$89 and Shortland Budget at AU$90, both including taxes.
The 10 Best Budget Hotels in Newcastle – Detailed Reviews
Each of these hotels offers great value, solid reviews, and something unique — whether it’s the view, location, or little perks that make your stay more comfortable.
1. Little National Hotel Newcastle – 9.2/10 Rating
- Starting from: AU$215.10 (according to Booking.com)
- Why It’s Great: Stylish, modern rooms with smart tech and luxury finishes. Guests love the rooftop bar and fitness centre.
- Best For: Couples or business travellers looking for affordable luxury
- Local Tip: Pop over to The Press Book House nearby — a cosy café with great coffee and books
- Booking Tip: Book directly for occasional free upgrades or discounted parking
2. Junction Hotel – 4.7/5 Rating on TripAdvisor
- Starting from: AU$199 (via Kayak)
- Why It’s Great: Located above a vibrant bar, it’s close to restaurants, shops, and transport. Rooms are boutique-style and soundproofed.
- Best For: Nightlife lovers and couples
- Local Tip: Walk to Darby Street for boutique shopping and top-notch brunch spots
- Booking Tip: Mid-week stays are often cheaper than weekends
3. ibis Newcastle – 3.6/5 Rating on TripAdvisor
- Starting from: AU$117 (according to Kayak)
- Why It’s Great: Reliable, clean, and simple — a solid choice for budget-conscious travellers
- Best For: Solo travellers or short business trips
- Local Tip: Head to The Wickham Boatshed for waterside dining, just 10 minutes away on foot
- Booking Tip: Look for bundle deals with breakfast included
4. Reign Inn Newcastle – 8.4/10 Rating on Expedia
- Starting from: AU$106 (via Expedia)
- Why It’s Great: Great location in Mayfield West with clean, comfortable rooms and free parking
- Best For: Drivers, stopovers, and longer stays
- Local Tip: Visit nearby Islington Park for a quiet riverside walk
- Booking Tip: Book early to lock in low rates — it’s a small property that fills fast
5. NOAH’s on the Beach – 9.0/10 Rating on Expedia
- Starting from: AU$188 (via Expedia)
- Why It’s Great: Beachfront views, modern amenities, and a great in-house restaurant
- Best For: Beach lovers and romantic getaways
- Local Tip: Watch the sunrise with a takeaway from Estabar Café, just across the road
- Booking Tip: Higher-floor rooms offer the best views — worth the small upgrade
6. The Grand Hotel Newcastle – 8.8/10 Rating on Expedia
- Starting from: AU$128 (via Expedia)
- Why It’s Great: Classic charm in the heart of the city. This heritage-listed building offers cosy rooms with great access to pubs, restaurants, and the waterfront.
- Best For: Travellers wanting history and central location on a budget
- Local Tip: Walk 3 minutes to The Dockyard for a casual meal and local craft beer
- Booking Tip: Upper-level rooms are quieter — request one if you’re a light sleeper
7. Merewether Motel – 9.0/10 Rating on Expedia
- Starting from: AU$137 (via Expedia)
- Why It’s Great: Clean, spacious, and modern rooms. Great for families with on-site parking and a pool.
- Best For: Families and road trippers
- Local Tip: Merewether Beach is just a short drive away, with ocean baths the kids will love
- Booking Tip: Weekend rates can spike — book early or try weekdays for better prices
8. Gateshead Tavern Motel – 7.8/10 Rating on Expedia
- Starting from: AU$89 (via Expedia)
- Why It’s Great: One of the cheapest stays with good reviews. Clean, comfortable rooms and a helpful team.
- Best For: Budget travellers under $100
- Local Tip: Visit Redhead Beach — less crowded than Newcastle’s main beaches and just a 10-minute drive
- Booking Tip: Book direct for last-minute specials and cancellation flexibility
9. Novotel Newcastle Beach – 8.6/10 Rating on Expedia
- Starting from: AU$225 (via Expedia)
- Why It’s Great: On the higher end of budget, but worth it for the location, ocean views, and full amenities (restaurant, spa, gym)
- Best For: Business travellers or couples who want comfort with value
- Local Tip: Stroll to the Newcastle Memorial Walk for amazing views of the coast
- Booking Tip: Sign up for Accor’s loyalty program for member-only rates
10. Shortland Budget Accommodation – 6.7/10 Rating on Kayak
- Starting from: AU$90 (via Kayak)
- Why It’s Great: Simple rooms with free Wi-Fi and parking. Not fancy, but great for a one-night stay or uni visit.
- Best For: Budget-conscious travellers and uni visitors
- Local Tip: Close to the University of Newcastle — ideal if you’re in town for campus events
- Booking Tip: Prices stay steady year-round, but call ahead for best availability
Our Ranking Method – How We Chose the Best Budget Hotels
Choosing the top budget hotels in Newcastle isn’t just about finding the cheapest price. We looked at several important factors to make sure you’re getting real value for your money.
Here’s what we considered when ranking each hotel:
Value for Money
Every hotel on our list comes in under AU$250 per night (for a standard double room, based on 2025 prices). Many are even below AU$150. We compared prices across Booking.com, Expedia, and Kayak to find deals that give you more for less.
Location
We gave higher points to hotels close to:
- Newcastle Beach and Bar Beach
- Popular dining and shopping areas
- Public transport (especially light rail stops)
Whether you’re exploring the city or heading to the coast, you won’t need a car to get around from most of these spots.
Guest Satisfaction
We only included hotels that score 8.0 or higher on review sites like TripAdvisor, Booking.com, or Expedia — unless they offer unbeatable pricing under AU$100 (which we mention clearly).
Unique Perks
Some budget stays come with extra value like:
- Free parking
- Breakfast included
- Pool access
- Ocean or city views
We’ve highlighted these bonuses in each hotel review to help you choose smarter.
Staying on a Budget in Newcastle – Smart Travel Tips
Finding a great hotel deal is only one part of saving money while travelling. Here are a few simple tips to help you make the most of your time in Newcastle without spending too much.
Best Areas for Walkability
Staying in walkable neighbourhoods means you can save on transport and explore more easily:
- Newcastle CBD – Close to shops, restaurants, and the light rail
- Newcastle East – Near the beach, cafes, and the iconic Bogey Hole
- Hamilton – Trendy and full of dining options on Beaumont Street
Many of the hotels we listed are within walking distance to these key areas.
Free or Low-Cost Things to Do Nearby
You don’t have to spend much (or anything!) to enjoy Newcastle. Try these:
- Walk the Newcastle Memorial Walk – Stunning views over the ocean and cliffs
- Swim at Newcastle Ocean Baths – Free and open to all
- Explore street art in the city – Grab a coffee and take a self-guided tour
- Relax at King Edward Park – Perfect for a picnic or sunset view
Final Thoughts
No matter your travel style, Newcastle has a budget-friendly hotel to match. With clean, safe, and well-located options starting under AU$100, there’s no need to break the bank.
Use this guide to compare smartly, book wisely, and explore freely — and enjoy everything Newcastle has to offer, from beaches to brunch to breezy walks by the ocean.
Frequently Asked Questions
1. What is the cheapest hotel in Newcastle, NSW right now?
Two of the most affordable hotels in Newcastle are:
- Gateshead Tavern Motel – from AU$89 per night (according to Expedia)
- Shortland Budget Accommodation – from AU$90 (via Kayak)
Both offer clean, basic rooms with free parking and Wi-Fi — great for overnight stays or short trips on a tight budget.
2. Which budget hotels are closest to Newcastle Beach?
Here are some affordable hotels within walking distance to Newcastle Beach:
- NOAH’s on the Beach – Directly opposite the sand, amazing views
- Alloggio Newcastle Beach – Budget-friendly, basic stay close to the ocean
- Crystalbrook Kingsley – A 10-minute walk with luxury touches at mid-range prices
These are perfect for beachgoers who want easy access without paying premium resort rates.
3. Are there budget hotels with free parking in Newcastle?
Yes, several budget-friendly stays offer free parking, including:
- Merewether Motel – Great for families or road trippers
- Reign Inn Newcastle – Handy location with secure onsite parking
- Gateshead Tavern Motel – Ideal if you’re driving and want to stay under $100
Always check if parking is included or paid separately, especially in the CBD where spots are limited.
4. Is it safe to stay in budget hotels in Newcastle?
Yes, most budget hotels in Newcastle are safe and well-reviewed. Areas like the CBD, Merewether, and Hamilton are popular with travellers. Always check recent guest reviews for insights on safety, cleanliness, and staff service.
5. Do cheap hotels in Newcastle offer free Wi-Fi and breakfast?
Most budget hotels in this guide offer free Wi-Fi, but breakfast is often extra. Some exceptions:
- ibis Newcastle and Novotel Newcastle Beach may include breakfast bundles
- Merewether Motel offers breakfast packages during booking
- Local cafés nearby are often a better (and tastier) value than in-house options
