The Dahab Hostel is one of the best bargains in town and one of the more popular budget accommodations. For about US$3-4 you get your own bed in a shared room and get to sleep in a very friendly atmosphere. The rooms are basic and small (you are paying US$3!). There is also a communal space for meeting fellow travelers or for just relaxing with a good book.
26 Sharia Mahmoud Bassiouni