The Ostello Venezia, Venice.

 Venice's youth hostel, a converted granary on the southern island of
Guidecca, is probably one of the best places to stay cheaply in this most
expensive of cities. The people on the quayside are looking across the
Guidecca Canal to the stunning view of the San Marco district - St. Mark's,
the Campanile, the Doge's Palace and so on. Rather bizarrely, a full-size
Chinese terracotta warrior is standing just behind me. (Don't ask why).

 (Chris Owen - tr95006@sable.ox.ac.uk)