I came here with the expectations to be just as good as SpicyPai, where I had an amazing time. And luckily SpicyTao lived up to it!
The owners, two Irish guys, will help you with everything you want to know and do. They certainly know how to run a backpackers hostel.
If back to basics is not for you, dont go there and don't complain. Koh Tao is not as fully developed as other Thai islands and therefore flowing water is scarce. Expect to be showering out of buckets and share dormrooms with the usual bugs. But the bathroom and dormroom is cleaned daily and the beds are more than fine.
What makes it the best is the common area where you lie down and watch movies 24/7.They have tons of movies and boredom will never be present in this hostel. A big table is where everyone sits, eats and drinks at. Thus a great place to meet new people!
Even for diving this hostel is great (very close to Roctopus, definitely check them out if you want to learn how to dive). Yes there are people partying in this hostel, but I have never had any problems with noisy guests or loud music.
All in all, the best place for social backpackers who want to have an awesome time at Koh Tao and dont care about luxury!