My group of 4 adults and 7 kids had a wonderful stay at Santa Cruz Hostel's Johnson Cottage. The location is perfect – an easy walk to the main beach, the boardwalk, the wharf, and the Marine Sanctuary, and a short drive to many other attractions. Beds were clean and comfortable. Showers were hot. The kitchen was well stocked for a hostel – sufficient number of dishes, pans, etc. for our group, though not in pretty matching sets like you'd find at a fancier place. The common garden area is well-maintained and the staff is friendly and helpful.
Just keep in mind that this place is a hostel and set your expectations accordingly.