We stayed here before we started the Quilotoa loop. The lady who runs the hostel is so welcoming and gave us lots of information on the Quilotoa loop and also getting to Cotopaxi (all in Spanish!). Her family work in the hostel and they couldn't do enough for us. We had a private room with private bathroom and it was absolutely fine. We had breakfast for an extra $3 the next morning but it was definitely worth it and sets you up for the day! We were able to leave our backpacks here for free whilst we went to do the loop.
Would definitely recommend staying here.