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Hostels:

Melanka Lodge (1800 815 066):
94 Todd Street
Many of the 3-day tours leave from this hostel so whether you plan to or not, you could end up sleeping here. There is a very large bar and nightclub which is always buzzing. Accommodation is situated a good distance away from the noise so it won't interfere with your sleep. Rooms come with a sink and small wardrobes. The bar also has some nice cheap meals. A bed in a 3, 4 or 8 bed dorm costs $17 per night

YHA Pioneer Hostel (08 8952 8855):
Corner of Leichhardt Terrace and Parsons Street
If you like to be in the centre of things stay here as it is right in the middle of the town close to the cinemas. There is a nice small pool on the grounds and all the rooms have air con. Prices range from $18-$22 per night in dorms of 4, 6 or 8