Iguana Hostel Oaxaca in Heroica Alvarado

Along a brick-paved street in the city center, this hip, down-to-earth hostel is an 8-minute walk from the Church of Santo Domingo de Guzmán and an 11-minute walk from the vendors of Mercado Benito Juárez.Low-key dorms with bunk beds feature colorful decor, reading lamps and fans, and some have 3-tier sleeping lofts for up to 16 guests.Breakfast is available for a fee. Amenities include a shared lounge with hammocks, as well as an unassuming, vibrant rooftop bar.