We stayed in a hostel portion of Prague Lion hotel. A room for two, with two twin beds, cost about $45 in July (height of the season, I think) - breakfast included, bathroom/shower in the hall. It is located in Praha 2, within 10-15 minute walk from the center. The hotel was ok - but beware of the police station or hospital (or both) across the street - siren noise at night is pretty frequent. However, if you start looking for accommodations early (march-april for july trip), you'll be able to find more central hostels with more character for the same price.
Unique Qualities: If the name Swejk means anything to you, check out Hostinec "U Kalicha" next door.
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Theme: Hostel
Comparison: less expensive than average
Address: 26 Na Bojisti, Praha 2
Website: http://www.prague-lion-hotel.com/