I really enjoyed this hostel. It's not very close to the beach, but a quick and cheap bus ride gets you there easily - and gives you a bit more of a Mexican experience. The walk from town is beautiful too. I stumbled upon a great local restaurant on the way which served amazing margaritas and guacamole for a fraction of the price of anywhere in the centre. In the evening families also sell tacos on the street near the hostel, they're amazing and cheap.
The convenience store next to the hostel is a great place to get cheap beer and drink it on the balcony and watch the sunset. Vallarta sunsets are amazing, and I recommend watching them from the beach and from the Oasis balcony if you have time. The view over the town is really special.
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