Wet flagstone street in Kirkwall old town with stone-built guest houses

Budget stays

Cheap Stays in Orkney

Hostels, family-run guest houses and proper B&Bs from around £40 a night — picked for value, not just price.

12 budget-friendly stays

What budget actually costs

Cheap stays in Orkney, without cutting the wrong corners

Orkney is more affordable than most visitors expect. The cheapest hostel bed runs about £25-£40 a night out of peak. A clean, well-run guest house room with breakfast for two is £80-£100. A modest self-catering flat for a family of four works out at around £30 a head. The trick is that the islands have very little chain accommodation — no Premier Inn, no Travelodge — so the budget end is dominated by independent guest houses, family-run B&Bs, and four small hostels. The quality varies more than at chains, which is why ratings and reviews matter.

Almost all of the cheapest stays cluster in Kirkwall. The two hostels — Kirkwall Youth Hostel on Old Scapa Road and Orcades Hostel on Muddisdale Road — are both ten minutes' walk from the centre, with full kitchens, social lounges and dorm or private-room options. The lowest-priced guest houses (Sanderlay, West End, Castaway, Bellavista) are on the residential streets above the harbour, all within a fifteen-minute walk of St Magnus Cathedral. The B&Bs (Hildeval, Polrudden, Ardconnel, Aultnagar, Karrawa) sit in the same belt and offer the genuine Orkney breakfast tradition — porridge, local sausage, eggs, oatcakes. For travellers without a car, Kirkwall is the obvious base.

Outside Kirkwall, the budget options are more scattered. The Anchorage in St Margaret's Hope is technically a hostel but rates a near-perfect 10 on Booking.com — it works for couples and families as well as backpackers. Out on Burray, Sanday and Westray you find a handful of low-priced B&Bs and farmhouse stays that beat the average Mainland hotel for character if you have a hire car. Stromness has no true budget tier; the cheapest beds there are still mid-range guest houses around £100 a night.

One Orkney-specific quirk worth knowing: the islands lean heavily on shoulder season. November to February rates can drop 30-40% off the July peak, and several B&Bs simply close. May and September give you 80% of the daylight, all the sites open, and prices much closer to the winter floor than the summer ceiling. Book mid-week and three nights or more, and most properties below will quote you a noticeably lower per-night rate than the headline.

Common questions

Budget Orkney accommodation FAQ

What's the cheapest place to stay in Orkney?
The two hostels in Kirkwall — Kirkwall Youth Hostel on Old Scapa Road and Orcades Hostel on Muddisdale Road — are the cheapest beds on the islands, typically £25-£40 a night for a dorm bed in shoulder season, more in summer. The Anchorage in St Margaret's Hope is the third option, more guesthouse-style but still budget-priced. After hostels, the cheapest private rooms are guest houses on the residential streets above Kirkwall harbour — Sanderlay, West End and Castaway are all under £100 a night out of peak.
Are there hostels in Orkney?
Yes — four. Kirkwall Youth Hostel and Orcades Hostel are both in Kirkwall and have full kitchens, lounges and good Wi-Fi. The Anchorage in St Margaret's Hope on South Ronaldsay is technically a hostel but feels more like a guesthouse, and rates a perfect 10 on Booking.com. Peedie Sea Accommodation in Kirkwall is a small budget option. There are no hostels in Stromness — the cheapest beds there are budget guest houses.
What's the cheapest time of year to visit Orkney?
October through April. November is the lowest of the low — outside Christmas and New Year, you can find guest house rooms for £55-£70 and self-catering cottages for under £100. Daylight is short, the weather is genuinely Atlantic, but the islands are quieter, the heritage sites are open at off-peak rates, and you have a real shot at the Northern Lights. May and September are the sweet spot for weather-versus-cost — about 30% cheaper than mid-July with the same long daylight.
Can you camp in Orkney?
Yes. Wild camping is legal in Scotland under the right-to-roam laws, with the usual leave-no-trace rules. There are also formal campsites in Kirkwall (Pickaquoy), Stromness (Ness) and on Hoy at Rackwick — all with toilets, showers and pitches under £20 a night for a small tent. Pickaquoy and Ness also accept campervans. Bring proper waterproofs and a sturdy tent: even in July, Orkney can deliver three weather systems in one afternoon.
Are B&Bs cheaper than hotels in Orkney?
Almost always, yes. A typical Orkney B&B will be £80-£120 a night for two people including a full Orkney breakfast — porridge, eggs, sausages, the works. Hotels in Kirkwall and Stromness start around £130 for the cheapest rooms and rise sharply in summer. The exception is the Stromness Hotel, which is older and cheaper but rated significantly lower than the B&B alternatives. For value and atmosphere, family-run B&Bs win on this trip.
How can I save money on Orkney accommodation?
Three practical levers. First, travel mid-week (Monday-Thursday) outside July and August — rates drop by 15-25%. Second, book three nights or more at a self-catering cottage; the per-night price falls noticeably and you can cook two meals a day from the harbour and farm shops. Third, share — most guest houses and cottages are priced per room or per stay, so two couples or a family of four often beats two hotel rooms by £100+ a night.