My partner and I spent 4 nights at the Jagoda & Ante guesthouse in September 2012. The room and the bathroom were clean as well as the common kitchen area. Our room had a terrasse with a table and chairs and there was also a common terrace where you can have a meal if you decide to stay in. We appreciated little details like having an extra small fridge in the room, a mini sewing kit to make some quick repair and getting our clothes washed and dried (for 40 kuna). The room was one of the cheapest places we stayed in Croatia (260kuna or around 35 euros per night in September).
The guesthouse is close to the center and the beach, but getting there requires some stair climbing, as most of the town of Hvar is located on a hill facing the sea. But you get to enjoy a nice view of the town and the sea from the room balcony.
A plus : Jagoda speaks a decent English and she can give you tips on what to visit or where to eat in the area.