Penguin Palace Backpackers

Queen's Gardens Backpackers (formerly Penguin Palace) is a convenient place to stay in the centre of Dunedin, as it is just five minutes' walk from the Octagon (no steep hills to climb) and is handy to Intercity and local buses. It also has twenty-four-hour check-in -- although if you are arriving late at night or in the "wee small hours" you will need to go to the Leviathan Hotel two minutes' walk away to pay your money and pick up your keys.

The rooms, ranging from double to dorm, come not only with bedding but also a TV. The hostel boasts the self-proclaimed "longest cartoon in the world" -- this creation by Spike, known for decking out the hostels of the Pavlova chain in the early 1990s, stretches for 60 feet (18 metres) over two flights of stairs. The railway station, home of the spectacular Taieri Gorge Railway excursion, is just three minutes' walk from the hostel, as is the Otago Museum.

This may not be the best place to go to if you want to make new friends with fellow-travellers, but is a convenient, uncrowded place for a night's stopover in Dunedin if you are travelling north, south, or inland to Central Otago.

-- Exclusive Hostelz.com Review