My boyfriend and I stayed in a self-contained unit at the back of the reception which was very private and had full kitchen facilities. The kitchen was so well equipped we decided not to eat out even on our only night in Kaikoura.
The room was large with one double bed and one single bed, dining table with 4 chairs and a sofa. There were only two of us so the extra bed and the sofa were perfect for our luggage. Bathroom sink was small but I guess it was fairly common in New Zealand as I saw the same sink in other places.

I would say Sunrise Lodge is in a good location, given that it's located right on main street with easy access to food and gas and the back of the lodge was a railroad and the ocean. Private parking is available.

All the rooms in the main block were booked when we went so we stayed 4 nights in the family cottage. It's basic, but has everything you need. It did get really cold at night, but it was Autumn, so not surprising. After cooking and having the little heater in the bedroom on it was cosy in the bedroom.
The rarely used railway lines run past the back of the hostel, across which is a beautiful pebbly beach backed by mountains. Doesn't get better than that.
Marc and Osi were awesome, and if your plans get cancelled for any reasons, ask Marc and he's more than happy to offer advice on amazing things to do and places to see.
They also own the coffee caravan next door - by the way, impossible to get bad coffee in NZ - so get morning coffee and take it to the beach1
Great location, 5 mins from town centre, which is itself a street, 2 mins from Whale Watch Whaleway Station and 2 mins from the best fish and chippie, called Continental. Go there, be happy. I'm English, I know my fish and chips, and I'm considering emigrating...
Would def be happy to stay here again. It's just far enough away from the loud hostels with bars, and pissed peeps, but close to everything.

We stayed in the self contained studio unit so can't comment on the backpackers section. It had everything we needed, the only two negative comments we would make is that there was not a decent frying pan in the unit, only 2 tiny ones which made it difficult to cook the fish we had bought, and the pillows were pretty awful. Apart from that, Marc the host was extremely friendly and helpful, and advised us on things to do and places to go. The highlight of our trip was one of his suggestions - the baby seals at Ohau Stream. Absolutely well worth a visit, although apparently the seals are only in there during the winter months. (we were there late April and they were present).
There was a nice private area outside our room which was nice to sit and have a coffee.

We stayed in the ensuite double, which was big and clean with a very comfy bed. The hostel is two minutes walk from the whale watching and 10mins from town centre. Transport is useful to get to dolphin encounter and the walk along the cliffs.