Don't know of hostels in Munich, but it's a *superb* city. Responsible for me starting drinking it was. And you get your beer in proper, clinky-together, "Prost" steins. We kept asking in Berlin, and nowhere had them. Several Berliners also either 1) denied that Bavaria was part of Germany or 2) denied that Munich actually existed (which made me wonder where I'd spent that collective 4 weeks of my life, but there you go...).