My girlfriend and I stayed at Hostel 7 Casa de Gingi on and off from January thru March 2013. It is by far the best hostel in Santa Teresa. The location is perfect. Hostel 7 is on a quiet side street, set back off the main road. Only 2 min walk to supermarket, restaurants, surfshop, etc... The beach is about a 5 min walk. The hostel has clean rooms, nice big clean kitchen (w 2 fridges) for guests to use, pool table, basketball hoop, bikes and surfboards for rent, WIFI, and a huge yard w lots of hammocks and palm trees and nice shady spots to camp (they rent out tents as well). Without a doubt, one of the best parts about Hostel 7 is the great staff working there. All really helpful, friendly folks- in particular the owner, Gingi. He goes out of his way to make sure every one is enjoying their stay. Gingi knows the area incredibly well and anything you want to know- he is the man to ask. Hostel 7 is an awesome spot and we cant wait to go back next year!