Atlantic Point is one if the best hostels I've stayed at. The staff Is very helpful, and they can arrange plenty of great activities in the area. The facilities are great. Free WiFi and breakfast make it a great value.
The location is great for getting to the cbd and to the nearby Kings Cross station. You are close enough to easily get to the kings cross bars, but far enough away to avoid the place if you don't want to go. A Woolworth's is right next door too. Lockers in the room and free Wi-Fi were great as well. I definitely recommend.