We stayed at Hosteria Itapoa for two nights, it's located right on the beach, less than a 5 min walk to nearby restaurants and the center of town. The hostel has a number of en suite cabins that were comfortable and clean. Breakfast was served overlooking the sea and included croissants with chocolate from the owner's cocoa plantation. The hostel itself feels very safe and the owners are extremely helpful, they arranged a boat trip to nearby Isla de la Plata which ran very smoothly. I would definitely return.