We lived in a hostel near 3 weeks and did not want to leave at all.
The hostel is located at a distance from the center, towards the second banos "El Salad". But this increases the sense of security. Walk to the center of 3-5 minutes, and we have found it beneficial to health.
Hotel owners are very friendly! Victor speaks only Spanish, but so clearly that all is clear. His son Matheus speaks fluent English and Russian languages. You can get friendly advice from them not only the sights Baños, but throughout Ecuador.