Hostel Mondpalast is a basic hostel in a decent location, worth a look if you're only staying a night or two.
The hostel is centrally located in the heart of Neustadt (the New Town). Getting from the bus station is a relatively easy walk. Just turn left down Dr Friedrich-Wolf-Strae and the second street on the right (Louisenstrae) will lead you straight to the hostel. If you're coming from the central train station, take the number 7 tram and get off at the Louisenstrae stop. You can buy a single ticket from the station or directly from the driver. There is a large shopping centre close to the hostel and also small night shops. The hostel is in the heart of the drinking/shopping district, so you will have no trouble finding a place to eat and drink (except on Sundays, when most things are closed).
Rooms and Bathrooms
The dorm rooms consist of a mixture of both bunk beds and single beds. There are large school-type lockers in the room, which fit a small backpack as well as other personal belongings and valuables. There are also tables/chairs in the room as well as a decent amount of power points to charge electronics.
The toilets and showers are separate; the toilets are quite small and cramped, while there is plenty of room in the shower area. In the showers there is a small stool and hooks for personal items. However there are no shelves in the shower for other shower items. There are no bath mats -- the floor in the shower area becomes easily flooded. Another negative is that there is a large window in the shower area and neighbors to the hostel complex can easily see into the bathroom.
The common spaces are adequate but the furnishings are as dull as the atmosphere. The kitchen is essentially fully equipped, with the exception of an oven; it's generally adequate to prepare basic meals. There is a small combined dining/common area. Wi-Fi is included in the price and works in the rooms. There is a cafe/bar below the hostel where guests may chill with the public, and guests are given a voucher for slightly discounted drinks. Having said that, there are plenty of decent bars and cafes on the same street.
This hostel lacks all of the facilities that make other hostels excellent. If you're after a bed in a quiet location, then you'd have no problems staying here.