"In recent years Berlin has seen a virtual explosion in hostels..."

Article mentions Berlin hostels:

Berlin Hopes to Keep Packing in Tourists, Buck the Downturn
http://www.dw-world.de/dw/article/0,,4087554,00.html

...it's cheap to stay in as well as fly to Berlin.

"We may take a cut, but Berlin is very competitive with cities like Paris or London in terms of what you get for your money," Taenzler said. "That goes from the price of a cup of cappuccino up to tickets for cultural events."

Hotel prices are roughly half of what they are in other European capitals, and in recent years Berlin has seen a virtual explosion in hostels, mostly located in the hip neighborhoods of Mitte, Prenzlauer Berg and Kreuzberg.

"At the moment, we haven't noticed any effects from the financial crisis," Simone Schueler, who operates the Pegasus Hostel in Berlin's Friedrichshain district, told Deutsche Welle. "We have to pay attention to our prices, but that's because the hostel market itself has grown so much."

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