This paper presents a practice-based research to achieve a deeper understanding of the spatial issues related to backpacker tourism, a booming industry in Budapest. The authors designed six backpacker hostels between 2013 and 2015, and of these, four are presently in operation. Hostels are the main infrastructures within the global network of backpacker tourism. Results from the design process revealed that the creation and operation of hostels are significantly influenced by three issues, namely, informality, density, and adaptability. These issues are negotiated on three interconnected levels: the city, the building, and the interior. The authors developed an experimental structure for dormitory spaces as a conscious reaction to these issues. This experimental structure is presented and evaluated, and further paths of develop- ment are formulated based on the results.