Sleepers Sleep Cheaper Hostel is the best hostel you could hope to find in Monteverde. They offer warm, family atmosphere and free breakfast -- all for a really low price! The owners are really helpful and lovely and they will help organize tours for you at a not-marked up price (which is not necessarily so in town).
The town of Monteverde is great if you want to experience the cloud forests of NW Costa Rica. They have many different trails, guided tours, self-tours, and canopy tours, which are awesome. The owners will also provide you with a map of the town, and will answer any questions you may have. Monteverde is a little touristy (to say the least). But once you get used to the long line of taxis down Main Street, you will realize you are in a beautiful and untainted place filled with nature -- it just takes some traveling to get there. Once you have decided to see the cloud forest, you will need to walk up the mountain to the sister town, Santa Elena, which is about three-quarters of a mile away. Or if you schedule a tour, they will drive you there.
Sleepers Hostel is located just off the main drag, a short walk from where the bus leaves you off. It is located across the street from an inexpensive local Pollo restaurant which serves great food and smoothies for cheap. Otherwise, there is not much past the hostel. The area of the hostel is very safe, and it is less than a five-minute walk to town.
Rooms and Bathrooms
The rooms are decorated in a charming yet youthful manner (the bedspreads have images of Taz and Tweety Bird on them, for example) -- most likely because the owners of this hostel have three young children. But once you get past this you will realize that the hostel is spotlessly clean! The bathrooms are clean too, and there is hot water for showers, which in Costa Rica is a rare find. For the price, this is one of the best deals you could find. Also, the free breakfast is very good -- consisting of fruit, eggs, toast, jam, and good coffee and tea.
The common spaces are many and varied. The hostel's exterior is painted in bright colors, making sure you don't miss it. You enter a courtyard when you first come in, and then the hostel is divided into three separate areas -- the kitchen has its own area, with ample cooking space for guests (just ask), and then there is the office where you can use the (free!) internet, which can be kind of slow, but it's free, as well as check in with the owners. You can also hang out in the courtyard in front.
Overall this is a warm, friendly, safe and cozy hostel, making you feel welcome and at home. And with free breakfast and internet -- it's a great deal!