Stay here. Without a doubt, stay here. This is certainly one of the best hostels in Europe. Each room is individually themed (try the Bob Marley room), and only the large dorms (12 beds) have bunks. The hostel has the feel of a commune, with a nice kitchen, very friendly owners, and an outdoor garden and gazebo. The backyard & gazebo are filled with places to hang out and read/chat. Hammocks are everywhere. Easy to do laundry. A common/recreation room offers more than 200 movies for free. Cheap beer is available. There's a book exchange.
The worst thing about this hostel can be summed up with: location. It's not near any metro stops, so a bus or tram is required. It's about a 15-minute ride to old town Pest. However, the hostel offers 24 hour reception and night trams run fairly frequently. There are lockers in the rooms, and bathrooms are large enough (though tough to get into in the mornings). Internet is available. Caving and parachuting trips are offered as well. The best part about this hostel is its scene – very chill, though you will certainly meet people who want to go out at night.
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