For my first visit to Prague, I arrived late at night and ended up in a downtown hostile. In the morning, the guy at the front desk directed me to the hotel next door for breakfast. The restaurant was in the basement with small windows at street level so there was not a lot of light. The tables were filled with people eating sausages and eggs, and everyone of them has a large glass of Pilsner Urquell sitting in front of them. It was around 9 am. My 2 day visit ended up lasting a full week. Prague is a must see city for everyone going to the EU.
You should have kept on looking...for a less hostile hostel. =;^)