The room's are quite nice and clean. I got the sense they don't have too many Western guests though as the staff did struggle to understand me when I did ask them questions. The area around the hostel is next to a major tower and has recently been modernized with expensive restaurants and cafes, but that makes it hard to find some cheaper dining options. Mostly though, it was a perfectly fine place to stay.
I spent 4 nights at Wada and it was a great place to stay at. The staff is very friendly and helpful and they all go out of their way to remember your name right from the start. There's a very nice bar/restaurant and other services. I took the hostel's Li River rafting tour one of the days and that was well worth it too imo. On the negative side, it's located a little bit away from the city center and the entrance to the hostel/rooms is a bit open, so it does seem like anyone could walk in.
It's in a great spot, right next to the lake, and there's a very nice restaurant attached with delicious food to start your day or end it.