Lydia's hostel is very nice, in a traditional local house restored in a cute way. The location is excellent, strategic, and the price fair. The cleaning and the organisation are good (automatic messages with the details for check in and check out are sent in time, the locking system is good). Nonetheless, at least in my experience, Lydia was not very responsive to questions, nor by messages nor by calls.
A downside: not being able to leave the luggage at the hostel before the check-in, which is quite late (15pm).
Anyway, I overall suggest the stay, the hostel is comfortable and in an great position to visit Malaga.