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Hostels:

Backpackers in Paradise (1800 268 621):
40 Whelan Street
This newly renovated hostel offers cheap rooms (all ensuite), and free boogie boards. Other facilities include internet, a giant cinema screen and a convenience store. Package deals which include an activity of your choice (ie surfing, kayaking etc.), entry into one of the many nightclubs and a good few drinks can be got in conjunction with a certain amount of nights in the hostel, and its only 10 minutes walk from the transit centre. Dorms sharing 4/6/8 cost $17.50 a night

Surfers Paradise Backpackers Resort (1800 282 800):
2835 Gold Coast Highway
If all the drinking and lazing is affecting your health and you want to get fit, this is the hostel for you. A gym, swimming pool, tennis court and sauna are all available without leaving the hostel. A licensed bar is also on the premises, as well as giant screens if you fancy staying in for the night. Dorms of 5/6 start at $21 a night

Islander Backpackers Resort (1800 074 393):
6 Beach Road
Right next door to the transit centre, Islanders is more like a hotel than a hostel. This is mainly due to the fact that it is part of the Islander Resort Hotel, which has its good and bad points. Facilities include a pool, sauna, squash and tennis courts. On the ground floor is a games room and a Global Gossip Internet lounge. On the other hand, you could find yourself going to the seventh floor to get to your room, while passing by families with their screaming kids on the way. All rooms have a balcony, lockers, tv and are ensuite. Beds in 4/6-bed dorms cost $18 per night