Hi Hostel http://www.hihostels.com/dba/hostel011010.en.htm is a nice, European-style hostel along the infamous Whyte Avenue (near the university campus). Shared rooms start at $22/night and private rooms at $60/night. Membership is not required, but only costs $20-30 (depending on where you're from) and gets an additional discount per night. PLUS anyone traveling around Canada post-festival should note, a Hi-hostel membership card entitles you to 20% off Greyhound bus tickets. Whyte Ave is not as easily accessible as the downtown hotels or the University Campus, but buses are available (see "Getting Around" on this site for details). It is about a $10 cab ride from the Westin to Whyte Ave, or a 70minute walk.
There is also a new hostel downtown, (about 6 blocks from the Westin), called Go! Backpackers Hostel http://www.gohostels.ca/. There is no membership and rooms start at $25/night, but apparently there is a discount for foreigners. It is about a $5 cab ride or a 15 minute walk from the Westin.
Please note, while I have estimated walking times, both hostels are in areas very close to popular bars and pubs. This means the walk can be less than pleasant after dark (unless you enjoy being hassled by drunk college students).
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