Snow River Hostel (907/440-1907, www.snowriverhostel.org [1]), 16 miles north of Seward [2], is a quiet place convenient to hikers coming off the Lost Lake Trail. Inside are dorm rooms with baths, a kitchen, and a common room. Bunks are $20 per person, and a private room costs $50 d. Reservations are recommended in midsummer.
Right downtown, Moby Dick Hostel (432 3rd Ave., 907/224-7072, www.mobydickhostel.com [3], mid-Apr.–Sept.) has dorm-style rooms ($20 pp) with kitchen facilities and showers. Basic private rooms cost $59 d, while two nicer units with kitchenettes run $70–75 d.
Adventurous travelers should check out Kayakers Cove (907/224-8662, www.kayakerscove.com [4]), on a small bay near Fox Island, 12 water miles from Seward. Rustic hostel-type lodging is $20 per person, or $60 d in a private cabin. There are no showers, and you’ll need a sleeping bag, but a kitchen and a wood-fired sauna are on the grounds. Kayakers Cove is accessible by water taxi ($60 pp round-trip) and rents kayaks (doubles $30 per day, singles $20 per day).
Links:
[1] http://www.snowriverhostel.org
[2] http://www.moon.com/destinations/alaska/kenai-peninsula/seward
[3] http://www.mobydickhostel.com
[4] http://www.kayakerscove.com