After doing plenty of research, we decided to stay at the Goat Hostel. We stayed in the private double room with shared bathroom and overall were very happy with it. The room was basic and clean with a view out onto the street and the shared bathroom caused no problems at all, though I can see how it may get a bit congested during busy periods.
The staff were excellent, very friendly and helpful showing us where to see and go, and made us a nice cup of coffee every morning. The location is also excellent within walking distance of the city center, But there is also a metro station at the top of the road if your legs are a bit tired. The market at the bottom of the road is a great place to visit and there is also a street at the top of the road with loads of quality restaurants.
Goat Hostel highly recommended for backpackers and young couples on a sight seeing weekend!