Really good hostel, comfy beds, free internet, incredibly friendly staff, walking distance from most attractions, free breakfast and it's one of the cheaper hostels in town. I would definitely go back there. Can be difficult to find, up a staircase in the alley next to the billiard hall, follow the pictures of goats.

www.hostelworld.com/hosteldetails.php/GoatHostel-Budapest-21850

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This is one of those places where the guests stay longer than they expected, and end up working there. The writing all over the walls and the squat-like attic give it a definite acid house feel, but don't worry, everyone’s friendly, and the hippy vibe is pretty infectious.

The 24-hour bar (essentially a fridge) and adjoining lounge are great to meet people and play some free pool. It’s a party place as well, so expect to have some messy evenings. A little bit of a mission to find, but definitely worth it. AND make sure you do a shot of Unicum at the bar. Medicinal apparently. Can't really remember.

www.hostelz.com/hostel/7006-Station-Guesthouse-Hostel

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Decent hostel, good sized rooms, good facilities. Great welcome, great service. They give you a shot of schanpps when you arrive, and when we saw a brochure for caving did all the organising for us.

Right next to St Stephen's Basilica

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Friendly hostel located near the centre of the city in an enchanting old building. If you are travelling in a group, ring ahead and book the 'penthouse' - it sleeps eight and has its own kitchen/dining area and bathroom with shower. And if you stay for more than five days you get a Yellow Submarine t-shirt.

56 Terez Korut - near Nuygati train station

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A hostel on the south-western edge of town. A laid-back idyll, run by a young couple who are always happy to see new guests. They will find a bed for you somewhere, whether it be a double room with TV and Fridge (a luxury in the summer), or merely a hammock tied between two trees in their garde. Everybody receives the highest order of hospitality. Check it out!

They advertise at the train stations and in phone boxes. Pick up a leaftlet and get on the bus.

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