Given that all the accommodation in Aguas Calientes is ridiculously overpriced, this isnt a bad budget option. We stayed here 1 night pre Machu Picchu. Its just off the main street with all the restaurents and not far from the bus/train station. Our double room was massive and faced the street. Its a side street so it wasnt noisy. The bathroom was fine, towels included. We didnt try the shower, but our friends said the shower was freezing. Not surprising really. The hostel has free wifi, a small kitchen, breakkie included (from the crack of dawn which is nice for the peeps who want to be the first ones at MP!) Its a basic s.american hostel breakkie, bread, jam, tea, cereal, yogurt. They let you keep your bags at the hostel for the day. I honestly didnt think this hostel was that bad. Our friends hated it but then theyre not backpackers so have had limited exposure to hostels. Guess it depends on your expectations.
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