Shanghai is full of cheap, older-style, Chinese-run hotels but unless you don't mind only having hot water for four hours a day, a rock solid mattress and a smell reminiscent of the smokers' room in an airport, then you'd be far better off with one of the growing number of modern options for under ¥500 per night that come with a recommendation. Try the reliable Motel 168 and Jinjiang Inn chains, found across the city. There are also some good value hostels including the Captain Hostel, housed in a 1920s block near the Bund and offering dorm beds for ¥70 per night, and the Le Tour Hostel, in Putuo district, which offers cosy private rooms at only ¥160 per person.