This wonderful, small hostel in Karakol is the best budget stay in town. Tucked away from the bustling town centre, this hostel has a homely vibe, located amongst a residential street near the park.
They only offer two dorm rooms and two private rooms, but this makes it the best place to relax after a hike and meet other travellers in a more low-key setting. They have a great shared kitchen with everything you need, a dining room, lounge, shared bathrooms, laundry, and beautiful garden filled with fruit trees. It's within walking distance to Duet Hostel & Cafe (a great cafe and backpacker hub too).
The highlight is the owner Arstan, who is one of the kindest people you'll meet and is always ready with helpful advice for your adventures.