PalermoART Hostel in Montevideo might not be in the most obvious neighborhood or boast 80 beds like some of the cities other offerings, but it can claim a friendly atmosphere and an appreciation for design not often found for $10 a night. The bar offers interesting events in a beautifully renovated building, the colors and textures really make you appreciate what is possible within the century old row houses found throughout South America. On top of it all, Luis and Ana are very fine hosts who are usually on hand and who aren't shy about sharing their city.