I don't have much experience with Hostels, but I travel a lot. I have spent some time in some VERY cheap hotels.
Benefits of a hostel:
-People, in that there are community areas. This one had air hockey and foosball tables, along with a big screen TV and several computers.
-This desk was staffed at 7am when I realized I had left my key in my wallet in the locker. A similar issue at a 0-service minihotel in HK where room and hallway were tiny and the door shut when I grabbed my bag 2 steps from the room. No one there and no apparent way to find someone.
-Good price. would prefer over 9 Boutique Hotel (HK) but not Mini Hotel (HK) - both cost 2x more.
-Good location. Not far from President's house, Main Station, shopping and night market.
-8-bed dorms give a bit of security. 3 key points between street and bed. +1 for locker (enough space for 2 carry-on bags plus an extra cubby for wallet/small purse and other pocket stuff.
-Well-designed bed "table/shelf" (5"x5"x12" box mounted on wall): 2 lights (incl. a flex-arm reading lamp), a universal power outlet and a USB port so you can charge 2 things at once. Flat top for beverage with a box (for phone, charger brick, lip balm, etc.), so you don't accidentally knock your little things off the top.
-towel fee: US$1.
Negatives:
-The bathrooms are not close to your room or accessible without a key here. If foreign food on the road causes an urgent need, there could be problems.
-no elevator/handicap access