Ok, you're probably looking at a bunch of hostels right now and trying to compare what they offer, the accommodations, prices, blah blah blah... Stop. This is it. You've found it.
This is the best hostel in Montevideo.
Location is perfect – you're in the geographic center of the city so you can go to Old City or Carretas if you feel like it, and there are plenty of bars and things to do in Cordon. Beach is maybe a 10 minute walk. Price is very reasonable. There's a kitchen. There's an awesome backyard.
But, most importantly, everyone is so friendly! The people at Buenas Vibras do an incredible job of making you feel welcome. If you can, route yourself through here on a Friday night – the asado is not something you want to miss.
In seriousness, I can't speak highly enough about Matias, Andres, and the gang.
Moral of the story: stop comparing. Book your stay here. You'll be glad you did.