I loved this hostel. The people were incredibly nice, laid back and very helpful. It's right next to the Jewish quarter which means cheap good restaurants, great pubs and clubs, and it's only a few metro stations away from all the attractions. Super cozy decor, bright colors and comfortable rooms.
On to the less good. It did not bother me at all because I can sleep through anything, but there is a pub downstairs so there is music playing well into the night. There is also a dance studio in the third and fourth floor so there's music playing during the day as well. Also, if you have back problems don't stay here, the beds are not very comfortable. Lastly, try to remember how much you are paying, and that for that reason a lot of students stay here, students who like to party, so be prepared, if you choose to share a room with other ppl, to have people coming in well into the wee hours of the morning...quite possibly drunk ;) Again, it didn't bother me at all, I actually loved it, made friends and ended up partying with said friends, but it is definitely a loud, happy and young hostel.
Take the free Budapest city walking tour! It was really good, enthusiastic fun tour guides and great pointers on food, souvenirs, where not to go, a fantastic city map and newsletter! Enjoy Budapest!
P.S. When going to Budapest, definitely invest on a 24 or 72 hr metro/tram pass. It's inexpensive, and worth it because they are strict with their transportation system. Waaaaay cheaper than taxis and safer too because taxis will try to cheat you. A good map of the tram/bus/metro is also good, unlike other cities I've visited, i.e. Prague, their stations are not well labeled at all.