I just stayed at this hostel during my visit to Easter Island last week. Lucy, the owner, was very prompt in returning emails, and was there at the airport waiting for us when we arrived. She greeted us with traditional flower leis that smelt amazing. We got to the hostel, and the gardens were beautiful. So far so good.
When we went in our rooms, the first thing I noticed was that there were no windows. There were patio doors with no screens - and being a city person, there was no way I would sleep with my door wide open! Not that Rapa Nui is unsafe by any stretch of the imagination, but there are cats and dogs and roosters... not to mention bugs. So, the room was really stuffy.
The room itself was a decent size... the beds were fine - I slept well which surprised me because I didn't think I would, jaja. The shower had very little water pressure and hot water did not seem to want to visit a lot but I appreciated the cold showers as a break from the scalding sun! The room was a bit shabby and rundown... not what it looked like on the pictures, and I never used the towel bc I found a dead ant on it, so I just air dried (which is completely possible there).
Location was good. It was across the street from an internet cafe and a block up from Oceanic car rental. It was 2 blocks up from the main street with all the tourist stores and little grocery stores... and about a 5 minute walk from the ocean. It is very quiet at night, and you can see all the stars - which was gorgeous. There are roosters next door though... they didn't bother me, but I was up around 8 anyways (around when the sun rises).
Breakfast consisted of a glass of juice, a roll, a piece of cheese and some sort of meat, and some fruit.
Lucy gave us a map, she lent us a flashlight for going to the caverns, and she offered us tips. The day we went early to the sunset and didn't get back to the hotel til 1130am, she saved our breakfast and gave it to us when we got back. She took us back to the airport and gave us shell necklaces as a goodbye.
This hostel cost 25,000 pesos (about $55) per night for a single, and 35,000 pesos (about $80) per night for a double. It was the least expensive lodging I could find. The island is not a cheap place.
BTW, rent a car and skip the tours... I rented an automatic car for 2 days from Oceanic for $220. (you could get a manual car for a little more than half that, but I don't know how to drive a manual.) A tour is $60 per person (day tour) plus the $60 park entrance (that is only checked at the volcanos, mind you). The half day tour I believe is $40 per person. I went every where on the island besides the volcano in the center, and even that I went up to the fence and took pictures instead of paying $60.
You can get all the info you want on the internet or from a book, or by talking to the park rangers, reading the info signs, or talking to the locals! A $60 tour on this island is not necessary.
Back to the hotel... Would I recommend it? If you are on a budget and don't mind a not-perfect hotel, yes. If you have a bit more money to spend, I would maybe book this one for the first night and take a look at the other hotels on the island. You may choose to stay... or you may go running. But again, this is like a 1 star hotel... it is extremely basic and not super clean. I'm mixed about recommending it. My friend I was with did tell me that he would recommend it, though.