Hostal Casa de Mouat - B&B Reviews
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They have probably one of the best views of the bay in town. There are some permanent residents living there so you kind of get the feeling you are staying at someone's house but weren't invited. It isn't really a hostel, More like an appartment. They have a nice Cafe below. If you're looking for a pleasant quiet place to stay this is it. Also, it is very reasonably priced.
The staff was nice enough, there was a mix up with my booking but they worked it out for me. The kitchen was yucky and all the pots and pans were dirty and I couldn't find any silverware. Whether the sheets had been washed was questionable. But it does have a great view