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If you don't want to be packed like a sardine into a ten-bed dorm, but want the cheap prices and friendly environment of a hostel, then the double and four-bed rooms of the Central Hostel are for you. As long as you're OK with orange furniture and orange decor on top of orange walls, Central offers a cozy and warm stay. Just look for the (you guessed it) orange building. It's also close to the train station and about seven minutes from the Old Town on foot, and features free breakfast, internet, and cable TV.
Editor & Riga Local
Well this is definitely one of the best hostels I've ever stayed at. Extremely nice staff, quite laid-back but clean and comfortable at the same time, a nice small place downstairs to hang out with fellow travellers, roomy dorms .... i would definitely recommend it to anyone without thinking twice. If only i had to mention something, i would say that it is not exactyl downtown, but still, it's an easy 10 minute walk to the center and even less to the train station. Give it a try, you won't be disappointed!