My daughter and I (mom) stayed here at the start of our Yucatan trip (Feb 12, 2011) for one night. We reserved a private room with 2 beds and bathroom, but only got one bed. The staff don't speak English and we were so tired and hungry so we just let it go. This hotel entrance is on a dark alley like street and there was garbage all over in front of the hotel. The room is really basic but it was clean, just very run down with exposed wiring and missing tiles, etc. There was an air conditioner and a fan, but they were both loud. At around midnight we were woke up by the super loud pounding music from a roof top disco down the road. The party got really loud around 2 am and the music and sirens did not stop until after 8am. In the breakfast room we heard from other guests that this has been going on every night and many people had left because of it.
This was the only hostel on our entire 2 week trip we didn't like. For the money I'm sure that there are lots of better places. Next trip I would skip Cancun altogether and just take a shuttle to whatever other destination is planned. No need to waste a night here.
Unfortunately we had to stay there again on Feb 25 the day before our flight as we had a shuttle arranged, but we did get a better room (#5) on the other side, and I was prepared with ear plugs and we shut all of the windows before going to sleep. This was a nicer room with 2 beds, a fridge, private bath and safe box. It wasn't nearly as run down and it was clean. It was still loud though once the music got going.
The breakfast is instant coffee, toast with margarine and jam, and there is pancake mix which you must prepare and cook on the griddle. We didn't bother. There were also jars with rice, beans and noodles for guest use.
There are a lot of hostels in this area near the bus terminal. There is a brand new one, I think it was called the Mondo (moon in spanish), it looked really nice and it wasn't much more in price, plus it has a rooftop pool. Almost everyone we had met planned on going there.