I can sincerely recommend this place!

Hotel/hostel located in the center of Old Town with affordable options to choose from. Clean and cozy rooms. And very friendly and helpful staff!
Minus point for backpackers may be lacking of proper lounge bar of hostel. But hey, fifty meters down the road you can find living room for your taste if you will.. Check out Cafe Leningrad.

Downstairs next door is a good quality but yet again affordable restaurant. Not the cheapest one, but not the most expensive either. And food has been worth every penny all the time I´ve been there. more