Colores Mexicanos is a very nice, clean, and well-kept place overall -- almost luxurious. This place draws a large Italian and Latino crowd, and is almost always booked up (make reservations early!). It has very nice rooms and bathrooms, a common area with TV, free Internet, book exchange, and a kitchen coming soon. The rooms all overlook a very bright courtyard, full of colorful flowers. For the couples out there, they have an extra part of the building reserved for you (nicer rooms, kitchen, common area) -- but of course for a higher price.
The atmosphere of the hostel is very tranquil and quiet. You won't find late night partiers banging around drunk all hours in the morning. However, a drawback is that the environment doesn't necessarily foster your typical social hostel feeling, but more of a hotel feeling of separation from the other guests.
The hostel is located a quick three blocks from the beach and is equally close to the bus station and main strip. Anything needed is merely blocks away in any direction.
P.S. This town is beautiful. A little classy and upscale for Mexico, but beautiful fine white sand beaches, crystal clear blue water, beautiful and diverse people, and everything is very compact and accessible. VISIT!
-- Exclusive Hostelz.com Review