If you’re yearning to travel for the holidays, or even sometime next year, you probably want a nice experience that won’t break the bank. If this is the case, consider staying in a poshtel. It’s a cross between posh and hostel.

Now before you think: “A hostel? No way!” realize that we aren’t talking about roughing it in uncomfortable digs with nothing but a backpack and a squad full of roommates. On the contrary, many poshtels are more like luxury hotels or boutique properties with extras that can turn your next getaway into an extraordinary, memorable adventure.

Here are 3 things you need to know about staying in a poshtel.

1. Europe is a hotspot for poshtels.

If you have frequent flier miles you’re ready to cash in, a trip across the Atlantic Ocean will put you within reach of scores of poshtels. A company called Generator is one of Europe’s top poshtel operators, with locations in Barcelona, Berlin, Copenhagen, Dublin, Hamburg, London, Paris, Rome, and Venice. Lonely Planet has named Generator’s Paris location one of the best poshtels in the world. It’s easy to see why, since the property features a French restaurant, and a rooftop terrace overlooking Montmartre and Sacré-Coeur, not to mention an underground disco who appearance emulates one of the city’s Metro stations.

2. Poshtels are becoming more popular in America too.

If Europe is far from your travel plans, and you’d rather stay stateside, you’re also in luck. Cities like Chicago and Miami are two emerging locales for poshtels – really nice ones, in fact. In Chicago, you can enjoy a stay at the Freehand property, which has eboth shared and private rooms, complimentary wifi, a fully equipped guest kitchen, plus a cool mixology bar to mingle and meet other like-minded people. Freehand prices will set you back just $40 per person a night and up in Chicago and $25 per person per night in Miami. Freehand’s owners also plan to roll out a new property in Los Angeles in 2016 and in New York by 2018. Several other coastal cities as well as hotspots like Austin, Texas are also on the drawing board for potential expansion. Various European hostel chains – including Generator and St. Christopher’s Inns of the United Kingdom – are also heading to well-known U.S. cities such as Miami, New York, San Francisco and Washington, D.C.

3. You’ll meet a diverse cross-section of people.

In case you’re wondering who you’ll be rubbing shoulders with if you decide to give a poshtel a try, it’s probably not who you think. Yes, there may be budget conscious college students in the mix. But according to Hosteling International USA, a nonprofit that operates youth hostels, half of its American members are 25 and older, including 10% that are over the age of 55. Generator reports that 15% to 20% of their guests are over the age of 30 and St. Christopher Inns says travelers over 30 represent 35% to 40% of their business.

Many people who flock to poshtels are more curious about artistic and cultural scene in the surrounding location. Thus, you’re likely to encounter folks of all ages and backgrounds who have an appreciation of music, art, fashion and local cuisine. Ultimately, spending a night, a long weekend or even a week or more in a poshtel may be just the way to try something new and different, and still stick to a reasonable travel budget in the process.

Lynnette Khalfani-Cox is a personal finance expert and co-founder of the free financial advice site, Askthemoneycoach.com. Follow Lynnette on Twitter @themoneycoach and on Google Plus.