The Riverside Hostel is a decent hostel in a decent location between Margaret Bridge and Nyugati Train & Metro Station. If you're expecting sparkling modern dorms with lots of flash extras then the Riverside might disappoint, however if you're searching for a cheap bed in a characteristic Budapest townhouse then look no further. A number of double rooms afford a bit of extra privacy, whilst a sociable lounge and kitchen make it easy to get chatting to your fellow travellers. The good location becomes a great one if you're in town for the Sziget festival as once across the bridge you can zip up to the island on the HEV.
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