For many years this youth hostel has been the main affordable choice for budget travelers in BSB, and at a mere B$10 per person per night, it offers value that simply can't be ignored. Officially it is reserved for local school groups and youth organisations, but in practise anyone can stay with an IYHA membership. It is also often empty, meaning you may end up having one of the clean 4-bed dorms to yourself. You can also make use of the hostel's outdoor pool for B$1.
The male and female dorms are kept strictly segregated, however, so this is more an option for solo visitors than something for couples. Staff can also be hard to come by if you try to check in at odd times, especially on weekends.
Simpang 336-17, Jalan Kebandsaan, Bandar Seri Begawan, Brunei