Best place for solo traveller to stay in Mumbai?

Hi, I'm travelling to Mumbai for lollapalooza, suggest me a good hotel to stay nearby. I would also want to checkout the nightlife in Mumbai and some sight seeing to one or two popular destinations. Considering all these what would be the best area to stay at. Also would you suggest staying in a backpackers hostel ? Are they clean and helps make friends? Or should I stay in a hotel? My budget is low don't want to pay more than 3k/night on stay.