I recommend this place.
The basic infrastructure given: beds in a big room, bathroom, wifi etc.
And the location is really nice. Not so much in the middle of the town, but you can walk to the central area. About 15 minutes walk takes you to Praça da Liberdade.
With one day ticket of public transportations, you can go around as you want because a metro station is very close to the place, which takes less than 5 minutes.
At the same time, there is a bike shop, in 5-minute walk, that you can rent a bicycle for reasonable cost. I really enjoyed it.
In the end Mario has a app he developed for hostees to go around the city. That's good.