Hong Kong Hotel Room
As with any major tourist spot, there are more than enough hotels in Hong Kong, the dizzying array of choices can be frustratingly large. The real problem is prices. Unlike much of the rest of China, where budget accommodations are commonplace, a cheap vacation in Hong Kong is almost unheard of. This is why most backpackers head away from the main areas of Kowloon and the busy section of Hong Kong Island—the only Hong Kong discount hotels are often hours away from any of the major city sights.
This isn't to say that a vacation here will break the bank, just that you'll have to do more than a little bit of research to find inexpensive Hong Kong hotels. The Chungking Mansions (pictured at top) is probably one of the few really cheap locations in Kowloon that won't scare off a majority of tourists. Just don't let the exterior fool you; the inside is much nicer than the crumbling facades would have you believe, and though it's location is hardly ideal (they don't call the area the ghetto for nothing), it's vicinity to the major tourist attractions is perfect for the budget conscious.
Hong Kong Hotels
The good news, however, is that there are plenty of mid-range hotels in Hong Kong. Since many of these are located right in the heart of Kowloon, there is little variance in quality between the majority of them. Unless you are ready to step up to the really high end Hong Kong Hotels, you may as well just throw a dart at a detailed map of the city and just stay there. The Shamrock Hotel and Nathan Hotel are just as good as many of the top end hotels in Hong Kong, while retaining more reasonable prices. The former has long been a tourist favorite, while the Nathan is a quiet little hotel just outside Kowloon that is often unfairly ignored.
For those choosing to stay away from the crowded images of Hong Kong streets, the southern half of Hong Kong island is the next logical stopping point. Here you'll find less variety when it comes to lodgings, and depressingly few mid-range options, however. Causeway Bay is home to a number of budget Hong Kong hotels and hostels, where you'll find a large portion of the backpacking population. The guesthouses here offer good bases for exploring Victoria Peak and the surrounding trails.
If you really want to get away from the city, though, the best places to stay are on the Outlying Islands, though you definitely have to plan ahead if you plan to stay at one of the more remote locations. Though development is rapidly encroaching on the more secluded areas, these are still sleepy areas where convenient transportation and things to do are at a bit of a premium.
Top image: oldandsolo (flickr)