The 'cheap and cheerful' is rarely refined, but Valencia Lounge Hostel's revamped interiors strike the perfect balance between all three.

The hostel's 11 neoclassical rooms and common areas were reimagined by local design studio Masquespacio in a palette of bright colours, graphic patterns and contemporary finishes. 'We wanted guests to feel like they were staying in a home, but one that makes them dream, disconnect and live a new experience,' explains the studio's creative director Ana Milena Hernández Palacios. 

To that end, each room has been given its own identity, ranging from a Memphis-inspired roost to a soothing ombre berth, a surf-themed chamber and other clever colour plays. All interventions keep true to the period features of Old Town location – vintage cement tiles and plaster mold-adorned ceilings alike – while mix-and-match furniture adds to the unassuming feel. 

For once, chic accommodation need not cost the earth.