We had a great time at Backpacker's House! The staff is very nice and there is a wonderful atmosphere!
When you book in the dormitory, you live in a small house, in a narrow alley which is not so clean, but it is fair, and it is located not far from the main street of Morro. Be prepared to be requested to pay 50% before you arrive, otherwise your reservation is not granted, and this is what happened to us. No breakfast included and you have almost no service at all but as the landlord, who is nice, said "this is why it is so cheap!" Not nice, not bad, just fair.
The hotel is clean and nice. The housekeeper is very friendly! However there is no real friendly atmosphere.
You could indicate better the way to the Hostel!