These guys know how to run a hostel. Easily competes for one of my favorite hostels of all time.
A day in the life of Casa Tranquilo-
Wake up to some bomb [--] cooking aka all the free eggs, bread, pastries, fruta fresca, and even homemade banana bread
Enjoy the company of the staff, they will be dancing by the time the sun comes up
Walk to town and explore, ask Elvis to go on a walk with his dogs, or have them set you up with a tour company
Come back and have that afternoon siesta and maybe a beer- hang in the commons area... you won't be alone
They go out to bars, show you the best cheap places for dinner, and will make you feel like a local. Get to know they staff, they make the effort to know you and that is rare. PLUS their music is right on with the mood.