Branch of the well-designed and run Friends hostel chain. The colourful private rooms are quite small (you'll have to climb across the bed to open the window), but still come with a desk, and can be excellent value for the location.
Despite the name, the hostel doesn't feel all that welcoming, and there isn't much of a traveller vibe here. The extras are nice though: guest kitchen, on-site washing machine, a lounge (with table football) and bikes for rent (R150/R300 for one/three hours).