We really enjoyed staying at Encarnacion. It had everything expected for a comfortable stay. My partner and I were really made up with the location as it turned out to be our favourite part of the city we explored - really bustly both day and night, right next to the beautiful cathedral and our favourite cocktail bar was quite literally on the doorstop!
One thing I would warn about, in the evenings, for anyone who doesn't plan to stay out late for drinks/food etc… the location is VERY noisy (mostly due to bars/restaurants closing). I had seen people say the same in other reviews and thought, how bad can it be? But we were woken up on multiple occasions between the hours of 12-4am, one night by construction work/drills at 2am - however I'm sure this was just unlucky for us! It didn’t ruin the trip by any means but if peaceful sleep is important to you… something to bear in mind!