I struggled to find the New Palace Hostel because the map on their website says it's on one side of Suleiman Halaby Street, but it's actually on the other side. It occupies the sixth and seventh floor of an old building in the neighborhood of Downtown. The guys are friendly, they learn your name quickly, and always worry about whether you're having fun. The single room costs 50 pounds per night, 35 if you want to share. I ordered one and got a private 4 bed room for me alone. Everything was very clean, and for this price I doubt you get much better. There is wifi in some rooms, and an internet cafe.