When you're backpacking round the Baltics your accommodation invariably has to satisfy three exacting criteria: cheap, comfortable, and close to the centre. Ok, so you can't expect bellboys fighting over who will carry your luggage, nor will you be treated to matching bathrobe and slippers, and you're pretty unlikely to find a mint on your pillow; but you will get decent digs in the Old Town without blowing your budget! A place in a dorm can cost as little as 15 Euros, or you can book double and family rooms for a bit more. Meanwhile a shared kitchen facility means your diet of pot noodles needn't be interrupted for lack of kettle.
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