A lovely hostel - both tranquil and fun. The owners are very welcoming - Thomas having a great knowledge of the area and going out of his way to help. The showers are excellent - a big bonus in the heat and humidity of Paraguay. On my second night the garden bar was opened. We were provided with a few complementary drinks and entertained with live music from local musicians. Those living in the area also came along, making for a fantastic party and lots of interesting conversation.
The staff here were excellent - very keen to help, extremely friendly and they even found me companions for the taxi ride to the airport (saving me some pennies). The breakfast was delicious (one of the best I've had in my 7 months of travel). It was a short walk to the beach and very close to a very nice shopping mall (for those that like shopping). It was also not too far to find a bus to take you to the historic centre. It also seemed very easy to meet other travellers.
For those wanting to hit the beach, this hostel is in a great location. A 5 minute walk and you're there! It is also close to lots of shops and nice places to eat. But be warned, it is definitely at the higher end of the price range of hostels on offer in Rio. I suspect this is because of where it's located.
The staff were so welcoming - you felt instantly at home. It's located really close to the bus terminal too, which came in very handy when I overslept and had to leg it there to get the next bus to Punta Arenas for a flight to Santiago. Only stayed one night, but everyone ate dinner together, including the staff, which was lovely. Comfy beds, a pool table, great computers and a good sized kitchen. Stay here, you'll love it!