The location is not great there's nothing around but buses and taxis are plenty full outside. So you can get about, and they don't cost much. The beds weren't comfortable and there wasn't enough bathrooms, and they weren't too clean. There is plenty of communal space though. But the place is decent value and the views are fantastic of Christo and Sugar Loaf!
Excellent location overlooking the beach and bay. A short walk down onto the main road and you've access to buses, taxis and the small beach behind the Sheraton Hotel. You could also walk onto the main beaches at Leblon and Ipanema. The hostel is very friendly and the bar and social area is great.
This guest house is in a favela I visited during the World Cup, it's worth a visit for the experience, I really enjoyed my stay there. The staff cannot do enough for you and they provided a favela tour, aswell as home cooking. The area is safe, like anywhere you just need to look after yourself but the locals are very friendly and helpful. There's plenty of places to shop, eat and drink right on your doorstep. Also transport is easy, by bus, taxi or mototaxi!