Citadella Hotel

This hostel and hotel combo sits atop steep Gellért Hill, in a historic fortress with atmosphere to spare. The hostel part consists of 14 beds in one room, with a small window that has amazing views. One guest declared the showers (just down the hall) the best she'd ever seen in a hostel. One-star rooms are a bit worn but have genuine character: wooden floors, low-slung beds and more of those dynamite views.