We heartily endorse the Margarita European Inn!! We've stayed there several times on our Chicago trips and thoroughly enjoyed the experience!!...if hosteling is a bit of a freak out for you and you still want something cheaper than a hotel, I suggest the Margaretta in Evanston. It was a women's residential hotel back in the day, so the vibe there certainly is a bit different. Most of the rooms are on the European Plan meaning the bathroom is down the hall. If you can think back to college, the rooms are like that. Except there are no Mark Spitz posters on the walls. Breakfast is provided.
http://www.margaritainn.com/
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