If you want to go with your family, or for a romantic gateway, forget it.
If you want to party, but to be in a quiet area during morning to rest a bit, or head to the sea while coming back from the Space, this is a really nice spot.
Rooms are a bit small, not perfectly cleaned, but it's ok for a short stay when you will anyway be most of the time on the beach or the dancefloor.
Seaview rooms have great balcony.

We stayed at the hostal in April 2010.. We were familiar with Talamanca and chose the hostal because of its typical Ibencian characteristics and it's postion on the beach. We had paid extra for a beach view from our room but when we checked in they gave us a room on the road side. When this was queried we were given a beach viwe room which was excellent. You could almost touch the sand. Breakfast was included and was more than adequate. Unpretentious but has hotel qualities. Would totally recommend if you want to experience accmodaion without the corporate slant, Loved it.

Stayed in Hostal Talamanca over Easter weekend 2010.
It's right on Talamanca beach which has a few places to eat /bars.
Breakfast was fairly typical - bread, fruit, cheeses etc. Perfectly fine.
Staff were very friendly and helpful. We asked for a mojito one night and got an amazing strawberry one.
We had a room over looking the street. We weren't that bothered as out in the town most of the day and night. Our room was by the reception so a little noisy at times. The room was a little small but fine for the weekend. The bathroom was small too. Probably could do with a bit of a revamp.
There is a marina nearby with lots of restaurants and bars - maybe a tad pricey. Town is a 25 minute walk. We would walk in and get a taxi (8 euros) back at night. I've seen reviews moaning about this walk and saying it felt unsafe. We walked it on many occasions along Carrer de Joan Carles and never felt worried. Get a taxi!
I would recommend this to friends for a reasonable hotel right on the beach.
It's quite close to Pacha night club too!
Can imagine it may be a bit of a party / lounge type place in the summer.

We were recommended to stay here by friends who live on ibiza so we came for a few days and fell in love with the Hostal completely. Full of friendly and helpful staff, the room, although basic, was just great with ensuite shower room and the views from the balcony simply stunning. The food was fab and the whole atmosphere of the place just fantastic. Instant relaxation and close to Ibiza town as well being 5 minutes from the Harbour then 15 minutes by boat to the Old Town.

Just go there, you will not regret it! We didn't and we will be going back, next time for far longer!