Vilnius has a reasonable amount of hotels, although budget choices are relatively thin on the ground and should be booked well in advance, especially in summer. The growing crop of moderate-to-expensive hotels are modern, business-oriented affairs, but there's also a nice choice of characterful, cosy places in stylishly restored old buildings. The Old Town is a good place to look, or the area around Naujamiestis ("New Town") and Gedimino prospektas just to the west, which is within easy walking distance of the attractions. There are also a few options on the rapidly developing north bank of the river Neris.
Other inexpensive options include an increasing number of hostels and B&Bs – the cheapest way of staying close to the Old Town. Hostels are basic compared to their counterparts in Western Europe: rooms are often cramped and very simply furnished, though invariably clean, and the staff usually enthusiastic and friendly.