The hostel section was booked out when we arrived so we stayed in one room of the cottage - the cottage having two rooms so we shared the living area and bathroom with other guests.
St Arnaud is quite a small place so it was an easy walk to the shop / garage / fish and chip shop. The DOC centre was also close by and there was a footpath down to the lake.
The room was of a good standard for a hostel and the living area in the cottage spacious. The weather was already a bit cold at night, there was one heater in the living room which worked well but would bit a bit noisy if you got cold at night. The bathroom had a bit of damp, but was otherwise ok.
We went on some overnight walks and were able to leave our bags in lockers and our food in the "tramper's fridge". The hostel was also vey helpful in letting us arrive early when returning from tramping.
When recovering from our blisters we enjoyed the TV with a good range a channels.