This place was a little hard to find. Especially because the sign with the name out front does not say "Warsaw City Hostel," but Dom przy Rynku. It looked as if during the week the hostel was some sort of school or home for children. This turned out to be quite charming. Very cheap at 12 Euros a night and great location right next to Warsaw's old town.
This hostel was immaculate. It used to be a hotel so it is possibly the swankiest hostel I've ever stayed in. The staff is really on top of cleaning the facilities and the location was superb. Free Wifi, free towels, free maps, even a free drink are available at reception. Need I say more? For 12 a night you'll be hard pressed to get much more bang for your buck.
The hostel itself is alright, but beware THIS PLACE IS IN THE MIDDLE OF NOWHERE! The facilities and staff are nice, but let me reiterate MIDDLE OF NOWHERE! It's pretty far outside of the city center almost into zone B on the S Bahn, and it is not accessible by bus or by bike. You have to trek through the middle of the woods for about 10 minutes. If you have rolling luggage this is not the place for you. Backpackers only.