From an activities and weather perspective, August may be one of the best times to come to Edinburgh. They have multiple festivals going on at once: film festival, arts (dance, music) festival, military tattoo performance near the castle, and fringe stand-up comedy festival.
It was so crowded that some sidewalks had two lines, one going in each direction. I rarely travel in the summer expressly to avoid crowds, and I was surprised by how crowded it was in late summer since school had already begun in many countries. I had also discovered after having booked my flight that hotel prices were sky high!
Here's where I stayed and what I liked about these places:
1) University of Edinburgh Summer Stays
It's quite ingenious- build a welcome center, hire students to work reception 24/7, and open up unused dorms during the summer to tourists. One wonders why other universities don't do this!
I can't say the price was cheap, but I can say it was cheaper than the exorbitant August hotel prices. The best part of the deal was it included all you can eat breakfast. You might think, why do I want to eat dorm food? Well, I personally thought it was the best dorm food I've ever had, and I've eaten at a couple universities. They had plenty of healthy options and also had unique Scottish breakfast items so that you don't have to go searching for a restaurant to try Scottish food.
Although they did not advertise this at reception, the key card allowed entry into the pantry (kitchen) on my floor which meant access to a common fridge, dining furniture, cupboards, etc. I also saw signs for laundry rooms but did not try using them.
2) Hostelling Scotland
I can't say enough positive things about my experience with Hostelling Scotland. Each hostel had private room options with en-suite bathroom. The staff allowed luggage storage which ranged from a locked room to middle of the lobby area kind of set-up, so don't store any valuables. My favorite part was the milieu. For example, the Glasgow hostel had a historic wood carved staircase inside the Victorian building. Going down this staircase, one could smell the wood and imagine living in this Victorian house. The exterior of the Stirling hotel was very 1500s. It's next to the Old Jail, and from the window I could see an ivy-covered wall, stone turrets of the old jail, and dilapidated headstones from the old cemetery. The hostel used to be Erskine church, so I wonder if they razed over some burial sites to pave the lot and so forth. It's a bit creepy but also very rustic and unique.
One downside to staying in rustic accommodations is there is no lift (aka elevator) in a couple of the hostels, so be physically prepared for many flights of stairs! Pack lightly.
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