Just back from a week in Nerja. Hadn't stayed in a hostal before but very pleasantly surprised. Very nice couple run the hostal, helpful but also leave you to your own devices if help not required. The room, whilst not huge was more than adequate. Spotlessly clean and serviced each day. New mattresses throughout while we were there. Plenty of wardrobe space, TV , aircon. Really pleasant roof-top terrace. Free wi-fi too
If you can manage without a pool I wouldn't hesitate to recommend it.

Cracking little hostal in a great location, the position is ideal its central so you can easily walk to the Balcon, Burriana beach or to Tutti Fruitti. The lovely lady Tania who runs the hostel is very helpful, if you need any local info she is more than happy to help.She has just had a brand new water system fitted so gallons of lovely hot water with no fear of it running out, brilliant. We went to do the tapas trails to get a true taste of the typical spanish local food which is given when you purchase a drink, that was a great way to experience new tastes.
As its in the old town you will find some really authentic tapas bars, we were made very welcome by the locals and never once felt uneasy or as if we were intruding, that was lovely.
Go to the caves if you get a chance, fantastic.

We had a apartment with kitchen which was very nice.
The staff was very helpful and nice.
If I go to Nerja again I would definately stay there :-)

The second time I have stayed in Nerja, the first occasion was in a dump. This time was different, the Cantarero providing comfortable accommodation despite it's 2* rating (no meal service unfortunately). Receptionist/owner Tania welcomed me when I arrived late and quickly dispensed with the formalities of booking in, her English is very good unlike my broken Spanish. She gave me the rundown of the places to eat and visit and a useful town map as well. I had a clean double room to myself, ensuite with bath, aircon that worked with very little noise, firm but comfortable mattress and clean linen and tea/coffee makings. The room had some character unlike the sterile rooms in large hotels (like the 4* that I stayed at in Brussels early Sept with feeble aircon). The only drawback - noise, street noise no but with tiled floors the corridors can be a bit boomey and a door closing can sound like a cell door being slammed, likewise if people decide to have a chat outside their room one can hear every word even though they might be yards away. I also found that when my neighbours had a shower or flushed the toilet I had to check they were not using my bathroom it was that noisy! Once over that though and provided nobody wants to leave at five in the morning one can get a good sleep, I know I did and I usually only sleep for six hours max. A car is a must for me in Spain but parking in towns is a real bummer and Nerja is no exception - there is a spot just by the hostal for about six cars but it is restricted parking and the Policia DO check!! I grabbed a spot one early evening and was thinking about what I was going to do the following day when I saw a cop pull up on his pop-pop and stride straight towards me pulling his ticket pad out of his pocket. The car behind me (also occupied) shot off like a scalded cat and you don't need to ask who was riding his rear fender! So I had to wait on the edge of town till 2000 when it was OK to park up for the night.