Albergue Juvenil Malaga is a great budget choice, but kind of far from the center of the city. It is a good twenty-minute walk from the center of Malaga at the Alameda Principal, and even further if you are coming from the train station. There are buses available from the Alameda, however. If you walk from the Alameda you head up the Avenida de Andaluca and when you get to a huge intersection that is like a four-leaf clover head to your upper right and keep walking up that hill and eventually the hostel comes up on your left.
Once you get yourself there, however, you will be happy to find the staff friendly and the rooms clean, if characterless.There are not many bars or restaurant options near the hostel, but the hostel itself serves breakfast, lunch, and dinner in its cafeteria. The food won’t be your most amazing meal but it fills you up. Another great thing is that the breakfast comes with the already bargain price of your stay, and if you have to check out before the kitchen opens they send you off with a brown bag and some fruit, juice, and muffins!
However, if you are looking for more than just a clean, cheap place to stay, you might want to look for something a little more central. The hostel is in a very residential and unexciting section of the city, and while the walk to go out for the evening may seem like nothing, it won’t seem like nothing as you are dragging your tired drunk self back up the hill to the hostel. While it didn’t seem like a very social hostel -- there aren’t the same common rooms you find in other places -- it is what you make it. You can always meet people in the cafeteria, or hanging out in the pretty patio area.