The paint was barely dry when we visited this hostel, but it was already building a good reputation. Bright four-bed dorms (mixed or women only) stop things getting too crowded, plus there are a couple of airy private rooms (one with balcony) and a well-appointed kitchen. The roof terrace and lounge bar are good for daytime chilling or nighttime partying.
Dreamboat Hostel
Top choice in Panajachel