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the second place on earth (and the first in the developed world) to have its World Cultural Heritage status revoked. The reason? The construction of the controversial four-lane Waldschlöschen Bridge across the river near the scenic spot where Canaletto once immortalised Dresden’s fabulous silhouette. Despite Unesco’s best efforts at hammering out a compromise solution, even suggesting a tunnel as an acceptable alternative, city leaders remained stubborn. Preparatory construction work on the bridge began in 2007.

Unesco have suggested the city may get the chance to submit a new nomination in future, but with different boundaries. Dresden’s red-faced officials will no doubt be eager to regain Unesco-listed status, which not only brings prestige and tourists, but also much-needed federal cash.

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Sleeping

Dresden’s hotels can be horrendously expensive, with rates among the highest in Germany. Thankfully there are plenty of cheap beds available at the city’s superb hostels.

BUDGET

Hostel & Backpacker Kangaroo-Stop ( 314 3455; www.kangaroo-stop.de; Erna-Berger-Strasse 8-10; dm €12.50-16, s/d/tr €29/38/51, apt €70-84, breakfast €4.90; ) With an Australian theme throughout, this superb hostel is spread over two buildings: one for backies, the other for families. Extras include the biggest hostel kitchen-diner you’re ever likely to encounter, free internet and several communal areas. The welcoming owner is a mine of information on the city.

Lollis Homestay ( 810 8458; www.lollishome.de; Görlitzer Strasse 34; dm €13-19, s €30-38, d €40-42, linen €2, breakfast €3; ) Dresden’s quirkiest hostel has two contenders for Germany’s most outlandish dorms – one containing a real Trabant you can bed down in for the night, the other a Giant’s Room with oversize furniture that makes guests feel like Tom Thumb. In addition there’s free bike rental, a laundry room and the reception desk is made from an old piano.

Hostel Mondpalast ( 563 4050; www.mondpalast.de; Louisenstrasse 77; dm €13-19.50, s €29-44, d €37-52, linen €2, breakfast €6; ) Check in at the out-of-this-world bar-cafe (with cheap drinks) before being ‘beamed up’ to your room in the Moon Palace – each one dedicated to a sign of the zodiac or some other spacey theme. Bike rentals and large kitchen are also available.

Also recommended:

Campingplatz Mockritz ( 4715 250; www.camping-dresden.de; Boderitzerstrasse 30; per adult/tent/car €5.50/2.10/5.50) Friendly little campsite 3km south of the Hauptbahnhof. Take bus 76 from the Hauptbahnhof to ‘Campingplatz Mockritz’.

Sunshine Hostel ( 880 8981; www.sunshine-hostel.de; Emerich-Ambros-Ufer 2; dm €14-18, s €25-30, d €36-40; ) Bright new hostel that gets rave reviews but is far from the tourist and nightlife action. Take tram 6 to Wernerstrasse.

Mezcalero ( 810 770; www.mezcalero.de; Königsbrücker Strasse 64; dm €18-23, linen €2.50, s/d from €33/58, breakfast €6.50; ) Bizarre Mexican-Aztec B&B, complete with sombreros, festive colours, tiles and tequila bar.

MIDRANGE

Hotel Privat ( 811 770; www.das-nichtraucher-hotel.de; Forststrasse 22; s €54-69, d €69-94; ) This small, family-run hotel in a quiet residential district has Saxon charm galore and 30 good-sized rooms, some with alcoves and balconies. Tobacco is definitely a no-no here, even in the garden.

Pension am Zwinger ( 8990 0100; www.pension-zwinger.de; Ostra-Allee 27; s €70, per extra person €20; ) Self-caterers, families and space-cravers will appreciate these bright, subtly stylish studios with full kitchens. Ring the bell and wait for someone to check you in.

Backstage ( 8887 777; www.backstage-dresden.de; Priessnitzstrasse 12; r from €74; ) A cool converted factory where rooms, each designed by a local artist, will blow your mind but not your budget. One has a four-poster made entirely of bamboo; others have swirling Gaudi-esque bathrooms. Breakfast is an extra €6.50.

Hotel Martha Hospiz ( 817 60; www.hotel-martha-hospiz.de; Nieritzstrasse 11; s €79-86, d €113-121; ) Fifty rooms decked out in Biedermeier-style (seven