This was recommended to us by our hostel in Quito. It was beautifully painted, with hammocks everywhere and a cool subtle political touch to it, which I loved. The owners were just lovely and were great on filling us in on what to do and where to go. Otavalo is just a wonderful place anyway but the location of this hostel was central and safe. For around $28US a night, we had big room with two double beds, a lovely tiled en suite and a view of the mountains from the balcony. Continental breakfast was $3.50, we had free wifi and a tv in our room. I wish we could have stayed longer as it was the perfect wee 3 day break from Quito that we needed.