Good location, not close to anything if you are looking for tourist attractions, but it's own neighborhood with lots of local color, bars, cafes, restaurants,plazas, places to sit and admire the architecture, benches, people to talk to. Learn 50 words of Spanish and 20 words of Catalan, you'll have a marvellous time. This is Catalunya at it's best.
If you need tourist stuff, head south on Gracia, it turns in to the Rambla just past Plaza Catalunya, all the tourist stuff you'll ever need,

This small but perfectly formed hostal (not really a hotel), in the old area of Barcelona, near P. Garcia is well located. Nice clean modern room, air con worked perfectly, only a bathroom and no shower but not a gr8 hardship (of the two I would prefer toilet). excellent price. recommended

Since my first review I have been back to HMB a few times so let's update.
The hostel has been enlarged and now encompasses two floors (1st and 2nd).
I am happy they enlarged the hostel as it was getting very popular and now have more options to get a room there. The enlargement did cause confusing room numbering: The original first floor room numbers were 1-14 but the rooms on the second floor are 101-114? As the reception still speaks poor English, it takes you a while to figure it out.

It is still noisy, both from the streets and from the silencer-less doors which slam impressively loud. That never really bothered me before but I had my whole floor check out at 6AM on Monday and was slammed out of my bed even with my earplugs. Silencers would be a good idea. Other than that, you are in a city with city noises so just suck it up.

It is also still in a great convenient location in Gracia [check out the Italian organic pizza/ice cream place on Placa de la Vila}, still cheap and the single with own wc and shared bathroom is still a steal for a short city break.
They offer flat screen digital tv, but sadly Spanish and Catalan language channels only.
It seems they fixed the WIFI because I had super fast internet all week (or maybe my laptop just picked up the neighbours' wireless in which case Thanks Neighbour!)

For single travellers, I recommend room 3 and 103 as the singles with toilet facing the street. They are the largest singles, with a decent sized cupboard, and also the lightest. Room 109? next to the terrace is a single without own toilet which is tiny, very light and with little luggage space. Ok if you just stay a day or two max, but not for longer. Also not recommended in a heat wave as it gets much more sun than 3 and 103. The shared bathroom on the second floor (so for rooms 103 and 109) is fit for wheelchairs and therefore massive.

And for couples, I did peak into a few other rooms in my corridor, most were fairly standard. Room 101 however comes with nice french windows and a cute small balcony unto Bonavista.

Hostal HMB is an excellent value, very neat and clean, we had a very friendly and helpful person at the desk, and very cheap! great location and on a groovy little block...