Great place! I've enjoyed my stay in the hostel which is really closed to the main (and the only) street once you learn a bit about the bunch of narrow passages that are composing the city.
The place is tiny and if you don't like to live "with" travelers, find something else. Staff people are great and very helpful.
If you are coming by car don't try to go up there with it. You should leave it in a covered parking downtown.