This hostel is located right in the red light district. It takes no time to walk there from the train station, and is really close to everything (including Dam Square). The directions on the website are a bit off though. It tells you to make a right at a store that no longer exists, but if you follow their directions to "turn right at the Chikita Shop" and find that there's no Chikita shop, don't fret. If you follow the directions they list on the site, still turn right onto Warmostraat and you'll find it (if you've walked past the Condomerie, you've gone too far.
The red light district is lively and there's a lot going on, all hours of the day and night. I walked home at night a few times, and there were a few shady, creepy men who made comments or tried talking to me/walking me to my hostel, but I think that can happen in any city.
The room I had was a 8 bed mixed dorm. It was relatively clean and the beds were comfortable. The shower was awful, though. When you showered, it went everywhere.
Its close to the location of the free walking tour (Dam Square, 1 minute walk). It's also close to Damrak, which is where I needed to be for a windmill tour.
My one criticism is the front desk staff. There was 1 guy who was really nice when I checked in, but otherwise, the rest of them were pretty terrible. They rushed you through, seemed irritated if you came by with a question, and generally were pretty useless. The bar staff couldn't have been more friendly and helpful though!
I would stay here again, just for the location.