La Iguana Perdida, Santa Cruz, Lago de Atitlan, Guatemala
 

First off, Im a big fan of this hostel after working there twice for 5 months total... The number one thing about this hostel, is its location on the lago... With a stunnig view of 3 volcanos sitting on the lake across from the hostel, its truely breathtaking and like being in a fairy tale land....
Full restaurant serving breakfast and lunch from 8-3, then a family style 3 course meal for dinner at 7... The menu is relatively cheap, but the dinner is pricey at $7, but worth it, as its a lot of food and good!!! Full bar, TV/DVD chill out room with couches, games, book library... Sun deck with plenty of chairs and pillows, hammocks etc... Mayan stone sauna, the only PADI dive center on the lake for a cool volcanic crater diving experience... Pool table, dart board, kayaks, shuttle services to anywhere, spanish school is available etc... Open air dorm $3, regular dorm $5, privates $7-$35... You just cant go wrong with this hostel at all!!! And for sure be there for the saturday night BBQ crossdressing party!!! Its always nuts, and they have a full dressing room for your costume selection... And the owners are FANTASTIC!!!!!!!