From the outside, this Murray Hill hostel doesn't give much away. It's an old brick apartment building on East 34th Street, surrounded by restaurants, bars, and shops. Guests have to be buzzed in and walk up a flight of stairs before they find the lobby. It's small, but efficient, with employees staffing the desk at all hours of the day and a comfortable seating area. This is the only common space in the hotel, but like the rest of the small property, it is bright, cheerful, and very clean. For the price, you can't do much better in New York City.

Those in search of a more social hostel atmosphere and more common spaces for mingling may want to consider Hostelling International, which has several lounges, a shared kitchen, and free daily offerings such as guided tours and pub crawls.

The hotel is in Murray Hill, where the saying "New York is the city that never sleeps" is true. It is a primarily residential neighborhood full of bars and restaurants, and young people out until the wee hours of the morning. There are fewer tourists here than, say, Times Square and the Theater District, so it offers a better sense of a "real" New York neighborhood. The 6 subway line is three blocks away. Some of the most popular tourist haunts, including Grand Central and the Empire State Building, are within walking distance, while most others are a 15- to 30-minute walk, or a subway or taxi ride away.

Rooms are small -- some are only around 50 square feet -- but they are bright and designed to make the most use of the space. Bunk beds are the most common sleeping arrangement, and lockers in the rooms are available for a small daily fee. Private rooms with double beds and in-room sinks and bathrooms are available, but most are shared rooms with shared bathrooms out in the hallways. There are also all-female shared rooms available. Private rooms feature small flat-screen TVs with cable, and all rooms have fire escapes that, though not accessible, give rooms an authentic New York vibe. Mini-fridges and microwaves are also provided to help guests save on food. Window air-conditioning units help keep guests cool in the summer. The rooms are cleaned everyday -- great for a hostel stay.

Groups traveling together should note that the hostel can't guarantee placement in the same shared rooms.

In addition to free Wi-Fi, the New York Budget Inn also offers free donuts and coffee in the morning (while supplies last) and free pizza and karaoke twice a week. A water bottle ​filling station is also available to guests.