Hostel on the Town Lake shores offers super rates for backpackers on a budget.. In Short Located a half mile east of Interstate 35, this lodge provides the convenience of many downtown hotels at a fraction of the cost. Guests here find easy access to downtown's Sixth Street entertainment district, which is popular for its nightlife. Both men's and women's dormitories are available at this 39-bed hostel. Four dorms house from five to 13 beds each. Group reservations for parties of five and more are available.