I stayed at this hostel with my BF and I couldn't have wished for a better place to stay. The staff is so friendly and the design of each room is unique and very artfully decorated. It is easy to find, since it is located right across the National Museum. Located at the end of three flights of stairs, the place is well secured and each room gets their own key. The common room is very practical, since there is a kitchen and refrigerator and you are allowed to use all the utensils.

When we arrived, the staff member offered us a glass of water and told us in a very detailed way what to do and where to go. The bathrooms and toilets are clean and since i didn't bring enough clothes with me, I just washed them on the spot and the lady in charge was so kind to lend me her drying rack to put in our room to dry.

The rooms were spacious and clean and designed in a very unique way!

On our last day, we kinda just thought to buy some groceries and stay overnight in the airport, but the lady told us we could stay in the common room and wait for our taxi around 4 am. Hospitality is for sure the forte of this hostel.

I recommend this hostel! One of the best!!!

Pros -
We were given an excellent welcome by the staff. Unfortunately I cant remember the girls name but she sat with us for half an hour (at least) telling us all about Budapest and gave us free glasses of wine which was delicious!
The hostel décor is amazing, it is so quirky and interesting and there is always something to look at.
The staff were great at answering any questions we had. They were so friendly and we had really good chats with them. They all gave us free wine and coffee throughout our stay.
The room was comfortable and again we loved the décor. We also definitley appreciated the fan in the heat! The shared bathrooms were good, I sometimes struggled to get the right heat but in the hot weather it didn't really matter that it was cooler than I would normally want.
The location is good with a nice restaurant street nearby and it is really near a metro station.

Cons -
You have to walk up about five flights of stairs to get to the hostel which is really hard going with a heavy backpack! However it's a protected building and so they can't add a lift for this reason.
We found it quite difficult to find (based on the instructions you receive in an email from hostelworld). It is pretty much directly across from the museum (we wandered around the museum for ages).

We stopped in Lavender Circus for 3 nights, as a relatively last-minute booking in the middle of an InterRail trip- and we could not have been happier with our experience there.
As we had been unable to do a great deal of research on the move, there was nothing but pleasant surprises; the rooms were incredibly spacious (much more hotel room style), the place was designed beautifully, with each room having its own individual character, and the staff were great at making you feel at home.
Lavender Circus is owned, and therefore designed, by a local artist- and the artwork on the walls, alongside quirky antique decorations, really does the hostel so many more favours than a cheaply done 'modern' finish would have. The old building it is situated in also compliments this, alongside having a good security system.
I never had to wait for the bathroom (we were in the shared rooms- I believe there were en-suites) and these were clean and good quality, with fishtanks! Also, I was able to put a wash on and hang my clothes out to dry for a very minimal cost.
We met some other couples staying at the hostel, and as there was no pressure to party as there is with many other larger backpacker-orientated places, you could sit on the large balcony/entrance area and have a couple of drinks and get to know people as they passed through. We also sat out with the staff a couple of the nights, who were interesting and friendly (with English that put any grasp of foreign language that we had to shame) and gave us some Hungarian national spirit to sample.
Overall, we couldn't have been happier with our stay here and only wish that we could have had longer! Definitely recommended for couples/small groups of friends who are sick of the institutional style party hostels and would like to stay somewhere calm, spacious, and beautifully finished.