I stayed several night at the Sol Andino Hostel in La Paz and have only good things to say about it. It is run by the same people as Estrella Andina and Cruz de los Andes (both located nearby), and as far as I know it is the cheapest of the three.
The room had a private bathroom, it was large, comfy, clean, quiet and had a nice decor. The shower was hot and fantastic (lots of power) and the bed was big and comfy and the sheets super clean. The room was cleaned daily.
The buffet breakfast, which was included, was excellent. It consisted of bread, jam, butter, dulce de leche, fresh fruit (papaya and banana), 2 types of cereal, strawberry yogurt, fresh orange juice, tea, coffe, chocolate powder and milk. There was always plenty of food available.
The staff was super helpful, they didn't mind us hanging around in the lobby on our last day and drinking several cups of tea, they even let us eat our pot noodles and refilled our bottles with boiled water :) Whenever we needed more toilet paper and fresh towels, they happily gave it to us. They were helpful regarding bus schedules, restaurants, etc.
I believe this hostel gives excellent value for money, as I visited several hostels nearby which offered similar prices, but were nowhere as good.
The location is also fantastic, near all the main tourist shops, travel agencies and restaurants. It is a 15 minute-walk to the bus station, so there is no need to take a taxi if you are short on cash.
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