I'm looking for recommendations about good hostels to stay in while in Budapest.
You could try the Wombat Hostel. I don't know anything about it except that it's in a good location on Kiraly Utca. I stayed in an apartment just across the street from them and I loved the area.
Based on my experiences staying at Wombats in Munich (once) and Vienna (several nights over a few trips) , I would suggest Wombats, one their newer hostels. No complaints at all, a very helpful staff, just good facilities. You can't go wrong with Wombats.
If you are young, that end of Kiraly utca is excellent.
But otherwise it can turn into party central on weekends and when school is on break and the European weekend party kids are in town.
So, tonight was a good example of what I said.
I have a friend who walks home right past the Wombat and from time to time will do a video call when she is walking.
Tonight what I saw was a total zoo, all the European party boys showed up to celebrate Halloween.
That sort of thing becoming too often in Europe these days ... its no longer the American tourists that have a reputation it is any Western European under the age of 30.
But its just when school is out and on weekends and you rarely see them during the day as they are sleeping off their drug induce comas....