I stayed at the Chillout Hostel in December 2013. It has a great location and is very close to Ban Jelačić square as well as other squares. There are a lot of shops nearby. Old Town Zagreb (Gornji Grad) is above the hostel and the stairs to get to it is located at the end of the street next to the hostel. The street the hostel is on is narrow and was lined with food and drink kiosks on both sides.
Soundproofing inside the hostel isn’t all that great due to the fact that it’s in an old building but the noise from other visitors is tolerable. The rooms are very small, again, due to being an old building but not bad since the place is just for sleeping. The beds are pretty comfy and there’s a wall outlet for each one so you can plug your stuff in. Beneath the bunk beds are drawers for storing your items, quite handy! There’s a kitchen where you can order food or you can buy your own food and use the kitchenette. There’s a bar area as well but I can’t tell you much about that because I don’t drink! =)
The staff is fantastic! I was having problems with an inconsiderate drunk in the room and the staff (and owner) were kind enough to move me to another room! I would definitely stay here again.
P.S. – Remind me to tell you the story of the drunk… Or at least write about it!