Tirana backpackers is a cozy hostel hosted in a small villa. This is very positive cause the inner garden is completely at disposal of the guests and you can drink beer with good company.
The rooms are quite crowded (too many beds for the size) but still ok.
Very poor breakfast and not so clean common spaces

This hostel is one of it's kind in the capital of Albania. Close to the city center, cheap and yet it has everything you'd want from a hostel. The young crew that runs this place also lives here and is very helpful. They even prepared the only city map in Tirana (there is no touristic information here)! Anyway, this large villa has several beds in a few rooms and a couple of shared bathrooms. You can use an outside kitchen and a bar, or you can just sit at one of the tables in the beautiful garden surrounded by trees. The atmosphere here is totally chilled-out, unless you want to party, which is also possible! Oh, and all the staff speaks perfect English (which is rare in Albania) and you can use the Internet for 1 Euro per day!

Check out: http://www.tiranahostel.com !!!

For me, this hostel fitted the bill perfectly - very central location, quirky atmosphere (it's quite a grand villa, converted to a hostel with a kitchen area at the end of the garden) and cheap/easy going. There was a real mix of ages and backgrounds of people staying here, but everyone seemed friendly. The staff spoke good English.
My friend had a different experience as she was a light sleeper and the sound of horns and stray dogs outside kept her awake, as did the lack of curtains. There were only two showers (though they were perfectly good) and it annoyed her that she had to wait 5-10 mins til one came free. I, on the other hand didn't find either of these even the slightest issue. Depends what you are looking for!

This is a small, clean hostel which feels of a home rather than a lodge. It makes it a perfect base to explore Tirrana. The staff can help you arrange transport and make an onward plan. It is also part of www.balkan-hostels.biz.ly and gives a 5% discount to travellers coming from another B.H. The backyard is a plus and the imediate surrounding(religious monuments) makes it an interesting area to live.