East Timor Backpackers
Lonely Planet review
Dili's only hostel is a charmer with 11 beds in three rooms. It's not posh by any means but there's a fun bar-cafe out back and plenty of characters milling around. The owners are helpful and welcoming.
The sleeping rooms here are pretty tight but not as tight as you'll be after a night in the Smokehouse bar-cafe in the inner courtyard of this compound of indeterminate age. Ex-pats and international travellers run aground; locals with a tale or two mix and mingle with abandon out back. Even if you don't smoke, arm yourself with a pack or two and your popularity will be assured. This is the place to rent a motorcycle for exploring the country and you'll get plenty of good real-world advice that's far more valuable than the pabulum of government websites.