A budget-friendly hotel in Kota Kinabalu is a practical choice for travellers seeking affordable yet comfortable accommodations. These hotels often offer well-maintained rooms, essential amenities, and a convenient location in the city at a reasonable price. This makes them an attractive option for many travellers, including backpackers who prioritise cost savings, families looking to stick to their vacation budget, and business travellers aiming to make the most of their corporate allowances.
By opting for a budget-friendly hotel, you can stretch your travel budget further, allowing you to explore more of Kota Kinabalu’s vibrant culture, indulge in its local cuisine, and partake in exciting activities. Here are the 10 best budget-friendly hotels in the heart of Sabah, Kota Kinabalu, that you can check into for a cost-effective trip.
What is the Difference Between Budget Hotels and Hostels?
Budget hotels and hostels are both types of accommodation that cater to travellers looking for affordable options, but they differ in several key aspects. Here are some of the main differences between budget hotels and hostels:
| Factors | Budget Hotels | Hostels |
|---|---|---|
| Room Type | Offer private rooms with varying levels of amenities. These rooms may include en-suite bathrooms, TVs, and other facilities. The level of comfort and privacy can vary widely. | Primarily provide dormitory-style accommodation, where guests share a room with others. Private rooms may be available in some hostels, but dormitory beds are a common feature. |
| Cost | Generally more expensive than hostels, but still more affordable than luxury hotels. Prices depend on factors like location, amenities, and room type. | Known for being very cost-effective, especially for budget-conscious travellers. Dormitory beds are usually the cheapest option, while private rooms in hostels are more affordable than comparable rooms in budget hotels. |
| Environment | Tend to be more private and quiet, providing guests a comfortable and personal space. There may be common areas, but social interaction is not a primary focus. | Emphasise a communal atmosphere, encouraging social interaction among guests. Common areas, communal kitchens, and organized activities contribute to a more sociable environment. |
| Amenities | Offer a range of amenities, including room service, on-site restaurants, and various facilities. The level of amenities can vary widely between different budget hotels. | Provide basic amenities such as communal kitchens, shared bathrooms, and common areas. While some hostels offer additional amenities, they generally focus on providing a simple and affordable experience. |
| Privacy | Provide a higher level of privacy with private rooms and often en-suite bathrooms. | Feature shared spaces and facilities, leading to less privacy, especially in dormitory-style accommodation. |
What Are the Local Dishes in Kota Kinabalu That You Can Try During Your Stay?
Kota Kinabalu, located in the Malaysian state of Sabah on the island of Borneo, offers a diverse range of local foods that reflect the cultural and culinary richness of the region. Here are some must-try local foods in Kota Kinabalu:
- Latok
Latok is a Sabahan dish of green seaweed mixed with coconut, shallots, lime, and chilli. It’s known for its unique texture and is enjoyed as a salad. - Hinava
Hinava is a Kadazandusun dish featuring thinly sliced raw fish marinated with lime, ginger, shallots, and chilli. It has a refreshing and tangy flavour. - Tuaran Mee
Tuaran Mee is stir-fried egg noodles with vegetables and sometimes seafood. It originated from Tuaran, near Kota Kinabalu, and is a popular local favourite. - Ambuyat
Ambuyat, not native to Sabah but found in the region, is made from the sago palm trunk. It’s served with side dishes like sambal, grilled fish, and vegetables.
Read more on places in Sabah you do not want to miss out during your stay here:
- Best Things To Do in Sabah
- Best Family Activities in Sabah
- Best Islands in Sabah
- Best Beaches in Sabah
10 Best Budget-Friendly Hotels in Kota Kinabalu 2025
1. Tune Hotel 1Borneo Kota Kinabalu
TUNE Hotel 1Borneo Kota Kinabalu is a superb choice for budget-conscious travellers. Offering clean and efficiently designed rooms, it provides a comfortable stay at a reasonable price, starting at RM82 for two guests, which can vary based on booking date. The hotel’s strategic location, within a short walk to the University of Sabah and near 1Borneo, makes it convenient for various activities, including dining and shopping. Guests praise the impeccable services, prompt concierge assistance, amenities, and various breakfast options. The safety measures, with card access to hotel areas, ensure a secure stay. For those seeking affordability, comfort, and a favourable location, this hotel is a valuable choice in budget-friendly lodging.
What makes it unique:
✅ Strategic location, a short walk to the University of Sabah and near 1Borneo.
✅ Comfortable stay at a reasonable price starting at RM82 for two guests.
✅ Impeccable services and prompt concierge assistance.
Address: Unit No. G-803, 1Borneo Hypermall, Jalan Sulaman, 88450 Kota Kinabalu, Sabah
Phone No: +6088-447 680
Google Map: Navigate Now
Google Reviews: Here
Other Branches Available:
KLIA – KLIA2 Branch (Google Reviews Here)
Penang Branch (Google Reviews Here)
Kelantan Branch (Google Reviews Here)
Facebook: https://www.facebook.com/THKotaKinabalu/
Check Info On Website2. Space Cap Hotel
Space Cap Hotel offers a unique and affordable lodging experience, making it an excellent choice with prices starting at RM61. It provides a cost-effective option for those looking for a different and memorable stay. Located at the heart of Kota Kinabalu, it offers convenience and easy access to various local and Western food options. The capsule-style accommodation provides privacy and security, and guests praise the friendly staff. While shared bathrooms are a part of the experience, they are generally accessible, ensuring a smooth stay. The roomy pods, with room to move around, and amenities like a washing machine and a water dispenser make this budget-friendly hotel a standout choice. Whether you’re a solo traveller or seeking a unique experience, Space Cap Hotel delivers affordability and comfort in a strategic location.
What makes it unique:
✅ Easy access to various local and Western food options.
✅ Capsule-style accommodation providing privacy and security.
✅ Roomy pods with amenities like a washing machine and water dispenser.
Address: Block C, Lot 1&2,3rd Floor, Kota, Warisan Square, 88000 Kota Kinabalu, Sabah
Phone No: +6088210131
Google Map: Navigate Now
Google Reviews: Here
Facebook: https://www.facebook.com/CapsuleHotel.KK/
3. Homy Seafront Hostel
Homy Seafront Hostel offers a stay at RM54 per night, providing an economical option for those looking to stay in a prime location with stunning sea views. The hostel’s staff is friendly and exceptionally helpful, assisting with travel arrangements and tour recommendations. The private double rooms and shared bathroom facilities are clean and comfortable, ensuring a pleasant stay. Its strategic location provides easy access to nearby shops, restaurants, and laundry services. Guests also praise the inclusion of round-the-clock snacks and a variety of amenities such as a microwave, hot and cold water machines, and more. Homy Seafront Hostel is a budget-friendly gem offering great value for money and a memorable stay in Kota Kinabalu.
What makes it unique:
✅ Prime location with stunning sea views.
✅ Round-the-clock snacks and various amenities.
✅ Easy access to nearby shops, restaurants, and laundry services.
Address: Homy Seafront Hostel, A-04-11, 4TH FLOOR, BLOCK A, Warisan Square, A-G-18 Jalan Tun Fuad Stephens, Jalan Tun Fuad Stephen, 88000 Kota Kinabalu
Phone No: +6010-250 2018
Google Map: Navigate Now
Google Reviews: Here
Facebook: https://www.facebook.com/p/Homy-Seafront-Hostel-100063761972492/
4. The Jesselton Cabin
The Jesselton Cabin is one of the top choices for budget travellers seeking a comfortable and well-connected environment. With prices starting at just RM38, it offers an incredibly affordable stay in the heart of Kota Kinabalu. The owner’s warm and helpful nature provides invaluable travel insights, while the communal spaces allow guests to socialize, practice music, and connect. Notably, the hostel offers a variety of amenities, including the freedom to store items in a fridge and enjoy complimentary coffee and tea. Its strategic location, just steps from the Sabah Tourist Information Centre and Jesselton Point, ensures easy access to island hopping and transportation throughout Sabah. With clean and cosy rooms and the convenience of nearby shops and restaurants, The Jesselton Cabin is a standout budget-friendly choice for travellers looking for both affordability and a vibrant atmosphere.
What makes it unique:
✅ Warm and helpful owner providing valuable travel insights.
✅ Complimentary coffee and tea.
✅ Strategic location near Sabah Tourist Information Centre and Jesselton Point.
Address: 74, Jalan Gaya, Pusat Bandar Kota Kinabalu, 88000 Kota Kinabalu, Sabah
Phone No: +6088-274 529
Google Map: Navigate Now
Google Reviews: Here
Facebook: https://www.facebook.com/backpackersinsabah/
5. Borneo Inn
Borneo Inn is a smart choice of budget-friendly hotel with valuable amenities. It is priced at RM68 and provides a budget-friendly option while delivering a welcoming and informative reception experience. The room’s spaciousness is noteworthy, making it a great value. The well-decorated rooms feature good curtains, large windows, and quality amenities such as towels, blankets, and an electric kettle. The shared kitchen with a gas stove and available fridge offers flexibility for guests. Furthermore, the hotel’s security measures, including night guards and parking options, enhance safety and convenience. Borneo Inn’s strategic location, near the airport and offering car rental services, is a standout feature for business travellers and those exploring the area. With clean and soundproof rooms and complimentary Wi-Fi, this budget-friendly option is a solid choice for those seeking affordability and practicality.
What makes it unique:
✅ Welcoming and informative reception experience.
✅ Strategic location near the airport and offering car rental services.
✅ Security measures, including night guards and parking options.
Address: 2, Jalan Kepayan Kobusak, Taman Masjaya, 88300 Kota Kinabalu, Sabah
Phone No: +603-8873 3710
Google Map: Navigate Now
Google Reviews: Here
Facebook: https://www.facebook.com/borneoinn/
6. H2 Segama Backpackers
H2 Segama Backpackers offers affordability and valuable amenities. With affordable and cheap prices, it provides a cost-effective option at RM64 per night while ensuring a comfortable stay, complete with helpful and friendly staff. The hostel is particularly well-suited for solo travellers and offers easy access to restaurants, a night market at Gaya Street, and halal food for Muslim travellers. The strategic location is a standout feature, with a night market just across the street, plenty of shops nearby, and a central position in the city’s heart. Guests also benefit from free breakfast, separate bathrooms, and a high level of security, making it a recommended choice for solo minimalist travellers, backpackers, and short vacations. H2 Segama Backpackers ensures affordability without compromising on quality or convenience.
What makes it unique:
✅ Well-suited for solo travellers.
✅ Free breakfast and high-level security.
✅ Easy access to restaurants, Gaya Street night market, and halal food.
Address: H2 Segama Backpackers, Block F, 1st Floor, No 31-1 Segama, Jln Tun Razak, 88000 Kota Kinabalu, Sabah
Phone No: +6011-6216 0598
Google Map: Navigate Now
Google Reviews: Here
View website7. Valley Hotel
Valley Hotel stands out as a fantastic budget-friendly choice, offering an affordable and clean stay. Priced at RM80 per night, it provides excellent value for money. The atmosphere of this hotel is welcoming, with friendly and communicative staff, making it a valuable guest experience. Notably, the rooms are comfortable, clean, and well-maintained, ensuring a pleasant stay. Its strategic location near numerous seafood restaurants and Gaya Street, as well as shops like KFC and convenience stores, makes it convenient for dining and shopping. Moreover, Valley Hotel’s commitment to environmental sustainability is commendable, with energy-efficient systems, water bottle filling stations, and child-friendly amenities. This budget-friendly hotel offers a well-rounded experience, providing both affordability and environmental responsibility.
What makes it unique:
✅ Well-rounded experience with child-friendly amenities.
✅ Commitment to environmental sustainability.
✅ Strategic location near seafood restaurants and Gaya Street.
Address: 52, Lorong Berjaya 5, Bandaran Berjaya, 88000 Kota Kinabalu, Sabah
Phone No: +6013-737 3194
Google Map: Navigate Now
Google Reviews: Here
8. Treeline Urban Boutique Inn
Treeline Urban Boutique Inn is another go-to for you if you are looking for a quality stay with competitive price rates. Priced at RM72 per night, it offers affordability without compromising on quality. The inn is well-maintained, with clean rooms and a staff known for their friendliness and helpfulness, ensuring a pleasant stay. If you seek a peaceful and clean environment with excellent service, Treeline Urban Boutique Inn is a budget-friendly gem that delivers great value for money, making it an excellent choice for those looking for an enjoyable and affordable stay.
What makes it unique:
✅ Well-maintained inn with clean rooms.
✅ Peaceful and clean environment.
✅ Ideal for those seeking an enjoyable and affordable stay.
Address: 38, Lorong Perindustrian, Nountun Industrial Estate, 88450 Kota Kinabalu, Sabah
Phone No: +603-8873 3710
Google Map: Navigate Now
Google Reviews: Here
9. Signature Inn
Signature Inn offers an ideal budget-friendly choice, combining affordability with a strategic and convenient location. With prices starting at RM67 per night, it provides excellent value for travellers on a tight budget. Situated in the city’s heart, the inn is within easy reach of Gaya Street’s morning and night markets. While parking can be a challenge in the city area, the rooms are clean, modern, and competitively priced, making it a budget-friendly gem. Guests appreciate the friendly and helpful staff and amenities such as soap, towels, and a well-functioning water heater. The cleanliness, accessibility to the town and eateries, and competitive room rates make Signature Inn a highly recommended choice for travellers seeking affordability, convenience, and quality.
What makes it unique:
✅ Clean and modern rooms.
✅ Accessibility to Gaya Street’s markets and eateries.
✅ Friendly and helpful staff.
Address: 43, Jalan Pantai, Pusat Bandar Kota Kinabalu, 88000 Kota Kinabalu, Sabah
Phone No: +6088-318 588
Google Map: Navigate Now
Google Reviews: Here
Facebook: https://www.facebook.com/p/Signature-Inn-Kota-Kinabalu-100076035285132/
View website10. Capsule Inn
Capsule Inn provides an exceptional budget-friendly experience, with prices starting at RM70 per night, subject to date variations. The standout is the accommodating staff, ensuring a warm and welcoming atmosphere. The inn features spacious, well-lit, air-conditioned capsules with ample locker space. Clean bathrooms, a well-equipped kitchen, and a comfortable living room with entertainment options add to the appeal. It is located near shops and restaurants and offers the perfect blend of relaxation and social activities, including beach events and a bar.
What makes it unique:
✅ Perfect blend of relaxation and social activities, including beach events and a bar.
✅ Spacious, well-lit, air-conditioned capsules with ample locker space.
✅ Accommodating staff and a warm atmosphere.
Address: Capsule Inn, Lot 3.33 & 3.34, 3rd Floor Star City Komplex, 02, Jalan Singgah Mata, Asia City, 88000 Kota Kinabalu, Sabah
Phone No: +6016-505 0311
Google Map: Navigate Now
Google Reviews: Here
Facebook: https://www.facebook.com/capsuleinn.asiacity
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Disclosure: This list was compiled by the team at My Weekend Plan after extensive research and shared opinions to suggest helpful recommendations for the public. The sequence of brands is in no particular order so if you have any other great suggestions too, please email us support@myweekendplan.asia. For more information, kindly refer to our copyright, privacy & disclosure policy.
