Small, cosy hostel 5min on foot from Vila Madalena subway station. Location is great - I loved this neghbourhood- and so are the staff and owner - they're all really friendly and willing to offer suggestions and advice. I had the double bed ensuite room which was very nice. Too cosy for me though, there was no real atmosphere, but that might be a one-off. There's also a cat around- lovely if you like them, less so if you're not a great fan!
Great experience, this looks more as a hotel rather than hostel: we booked a double room which looked fantastic (very clean, huge mirror, TV, cupboards, hangers) and had towels, soaps and extra blankets. The staff is very helpful and friendly: we've been given all possible directions to the waterfalls and they're all very open to chit-chat. One morning I've forgotten my card by the common computer and they've saved it for me and returned it when I was back in the evening.
I stayed in the 16bed dorm during the carnival and it was a very pleasant stay: location is very good and safe and the hostel is very clean. The staff is lovely, very helpful to help and open to chit-chat. Each bed comes with its own locker, however, mine was broke. Luckily, I used my friend's but had I travelled alone it would have been very inconvenient. Also, the breakfast is very basic!