Cheers Hostel is a nice and cheap place to stay in Istanbul, located in Sultanahmet, near the main atractions of the city. Cheers is one of the best hostels I've ever been to (and I've been to some). My friends and I stayed in a standard 4 bed private room, which was clean and spacious. Although the hostel is really secure, there were lockers also. The breakfast is good and the terrace bar is just fantastic, with stuning views among Hagia Sophia and Sultanahmet. I would go back, no doubt.