If you're after a cheap, well-located place to stay in Shanghai, you can't beat the Captain Hostel. There’s a choice of dorms or private rooms and they’re very, very clean.
It's also just off the Bund (taxi drivers will always know that one) and not far from the main shopping strip and metro stations.
37 Fuzhou Lu (pronounced Foo Joe Loo); www.captainhostel.com.cn
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