My friends and I have stayed at Franz Kafka hostel for 3 days. It's located just in the middle of Old Town, close to main square and lots of restaurants, pubs, bars, music clubs etc. Hostel is clean and well-kept. Downstairs there is a mini market open till late hours and kfc opposite, just as souvenir shops. We had a problem with parking space but we found one near National Theatre - bit expensive though. Generally I recomend this hostel - and Prague which is a beautiful city.
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