A hidden hostel in Rio's slums is the best place to stay during the Olympics

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Rio hostel sugarloaf

Reuters/Pilar Olivares

The view from Pousada Favelinha's patio, a hostel in one of Rio's slums.

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Rio de Janeiro hasn't had an easy time preparing for the 2016 Summer Olympics.

A country-wide recession, political unrest, pollution, and tales of perilous infrastructure have plagued the city.

Nonetheless, an estimated 500,000 tourists from all over the world will flock to Rio between August 5th and 21st, eager to catch a glimpse of the world's best athletes in action.

For many, this trip-of-a-lifetime may be marked by exclusive parties and lavish hotels. But for the more intrepid budget traveler, there are affordable lodging options that offer a unique cultural experience along with cheap bunks.

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Pousada Favelinha is one such option. In the center of one of Rio's numerous favelas, or urban slum neighborhoods, the hostel has 16 beds that cost approximately $25 per night.