Although it’s a bit removed from the action, this impeccably-kept sparkly hostel (with cleaner-than-Clorox rooms, shared kitchen, TV room and excellent rooftop terrace) has a lot going for it. The modern octagon-shaped building offers small- and medium-size dorm rooms with good mattresses and plenty of space.
The streetfront cafe is a good place for a coffee after a visit to Cuenca's key museum, Museo del Banco Central 'Pumapungo', across the way. The only downside is the noisy traffic outside.