I stayed at Hippo for a week. Although the steep walk takes a day or two to get used to, it's not actually too bad. If you're looking for a party hostel this is not the one for you. You would be better off staying at one of the many hostels in the centre of town.
The hostel is split into 3 self contained houses. I stayed in the bottom house and white house while I was there. The best views are from the top house, but views from the white house are pretty good too.
I stayed in an 8 bed and a 6 bed dorm. The beds were fine. The white house was a lot more comfortable than the bottom house. Nicer bathrooms and dining and lounge areas.
It's around a 5 minute walk down to town. The Fresh Choice supermarket is also a 5 minute walk from the hostel.
Staff were friendly and went out of their way to make sure everything was good. I actually found booking activities with them a good bit cheaper than booking them in town. They can also sell you vouchers for time on their wifi hotspot.
Kitchens were well equipped and very clean as were the bathrooms. I would stay here again if I went back to Queenstown
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