This hostel is quite large, and, unlike other YHA hostels, very quiet. It's located in a residential area a little north of the city centre, but it's less than 20-minutes walk to the lake. Very close to the Lowendenkmal monument, and a Coop supermarket is only a few blocks away. The rooms and bathrooms are clean, but the breakfast is quite plain. Reception closes at night, and the internet and laundry is really expensive!
Directions: Take the bus from the train station and get off at the Jugendherberg (?) stop. Continue along the road the way the bus is going and take the path on the right marked with a very small yellow hostel sign. Follow the path to the hostel.
A few years ago I stayed in the Youth Hostel in Lucerne. It was allright, but the Hostel is a bit outside of the city centre. If you plan to stay overnight, it is a good deal.
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Address: Sedelstrasse 12, Am Rotsee, Lucerne, Lucerne, 6004, Switzerland