As a family of four (the kids are full grown), we stayed at the Te Anau Lakefront backpackers one night before going down to Milford Sound. The location is great, being right on the lake, and just a short walk to town. The facilities, on the other hand, were about average. First, our room was off the porch, and this presented issues, including some noise (not much) and smoking, so we had to keep our door shut, even when we were moving in. The buildings are a bit older, and in o.k., but not great, condition. The room was reasonably sized, and the bathroom was o.k., but the shower water got over much of the floor.

The common areas are fine, though again, showing their years. The TV room was a bit small given the size of the rest of the place, though the kitchen, which had the desired amenities, readily handled everyone there (so far as we could tell).

My overall take on the place is that it is a fine, though not wonderful, place to stay, either for a night or a few days. You will benefit from the location, but other than that you will find it to be an average backpackers. Oh... no complaints with the staff. They were friendly and efficient.

We stayed in a private double room with a shared bathroom over the Christmas holidays. Even though the hostel was full the bedrooms were quiet and we slept well. The hostel has a number of different buildings with the main housing the reception, kitchen and common rooms. It was nice to have the main building away from the bedrooms. The décor is a little worn and our mattress had seen better days but was reasonably comfortable. Overall, the hostel looks a little shabby but was nice and clean and quiet. The kitchen is reasonably equipped (missing a few pot lids here and there but very functional).
The facility is located right on Lake Te Anau and an easy short walk into town where there are plenty of restaurants and two supermarkets.
The staff were very helpful and showed us day hike trails, and answered our many questions about booking Milford Sound cruises.

I only spent one night at the Lakefront Backpackers in Te Anau. I was booked in a 6 beds dorm and decided to upgrade for a 4 bed female dorm. Wise decision. My friend and I had the whole (large) dorm to ourselves, and as a bonus we had an ensuite, our own kitchen and fridge. The staff was not very friendly but was good value for money and I would stay there again.

I stayed in this hostel many times, and I always have a very nice sleep during my stay.
the mattresses are great, clean, warm linen and blankets too. The heating system of the room you can regulated your self witch is nice.
I was very lucky and all the times I stayed on this rooms: "Lakefront", "Milford", "Rotebourg" and "Greenstone". All of them are en-suite, sharing the room with 3 or more other people and a great full front view to lake Te Anau. Most of them have access to a lovely big balcony with couches and tables(smoke free area). The kitchen facilities and toilets are clean and well organized; there's recycling bins too and plenty of tea towels to keep the area clean.
The location is one of the best, just 10 minutes walk to main town and 15 minutes walk to the big supermarket, the best scenic views, that's for sure!
The reception area has heaps of trips advice and they help you to book any activity in the Fiordland National Park area. Friendly and efficient staff too.
the negative thing: In the en-suite dorms the only thing I was expecting is hand soap, there's hand towels and bath mats, but where was the hand soap?