The hub of this nightlife is the hostel scene.

Hostels in Budapest are considerably cheap, ranging from £8/$12 a night to£12/$16 a night if you are feeling a bit fancy. Since nightlife in Budapest is one of the best in mainland Europe; consequently, things can get a touch wild.
There are many amazing hostels dotted around ‘Pest and I presume some very nice ones in the Buda’ hills which tend to be more on the quieter side. So if you are looking for a fun and boisterous time, then a hostel in the heart of the city is what you want. Now, where to look? Obviously hostelz.com and hostelbookers.com are fantastic options as they will give you full and comprehensive reviews and prices.

Most of the hostels available will provide the guests: a great place to chill and prepare for daily and nightly adventures. However, there are some hostels known as the Budapest Party Hostels that offer much more. These hostels have certain nights where everyone at the hostel are involved, including the staff, and they do so in a fun, drunken manner. The atmosphere is amazingly relaxed and most of them offer in-hostel bars, free Wi-Fi and everything else you would need from a hostel in Budapest.
There are four that I would recommend, each catering to a particular taste. Some for the hardcore, some for the chilled, some for groups, and some for the lone-wolfs. I stayed at the one named Retox, situated in the heart of the city, that was based in an old courtyard. It was very private yet unbelievably sociable. The others are named Carpe Noctem for lone traveling party seekers. Carpe Noctem ITEA for a more cultured experience by day, and Grandio, which is on the more ‘hardcore’ side of things, or so I’ve been told.
These hostels are becoming really well known by European travelers, thus at times, they can also attract the wrong kind of travelers. Yet, their all-embracing vibe and wonderfully exciting staff will make a stay at any of these hostels an absolute treat for any out-going venturer. If the party hostels are not for you, there are alternatively many other wonderful luxury and boutique hotels situated in and around central Budapest that can accommodate all kinds of travelers, from the cultured introvert to the drunk prick. So unless you fall outside of this seemingly all-encompassing scale, you should probably go to Budapest and you should probably stay in a hostel.
Article written by Daniel Cooke.
