Just past the domed Dharma Beach Hotel, slightly set back from the beach, this distinctive four-story building has cozy wood-accented rooms with fans, balconies and a rooftop deck with panoramic views. There's also a small lounge and communal kitchen with free coffee. Hotel activities include ukulele lessons (per hour $7) and Spanish lessons (per hour $10).
It's one of the more eco choices in Montañita; the hostel recycles waste and reuses water in its gardens.