For the second installment of our World’s Best Hostels series, here’s a fabulous boutique hostel in Portugal’s most cultured city….

#2 Lisbon Lounge , Lisbon

You’d never believe the Lisbon Lounge was the city’s first hostel, with its stylish design and modern art on the walls.

The chicest pad in the Baixa has had a major revamp since moving to downtown Lisbon, but the nine rooms, housed in a historic apartment block, still have a homely vibe.

With a large kitchen, and three ‘lounge areas’ well stocked with magazines and a film projector, it’s like having your own arty apartment in the city center, and the six bathrooms mean you will have plenty of time to pamper yourself before a night on the town…

The ‘Lounge’ keeps its cool credentials with an enviable location close to the Bairro Alto, home to the city’s best nightlife, and the main train and tram system – perfect for a recovery session on the beach the next day.

They pull out all the stops to make your stay chic – there’s a free breakfast, unlimited tea and coffee all day, and even a mini bar for that penthouse feel.

With an almost perfect score from all customer ratings, this hostel puts the boutique in backpacking – and prices start at only €18 per person per night.