Very good location - its a one minute walk from from Gracia Metro station.
There are cafes just over the road on the way to the metro where it's nice to have Breakfast, also a little supermarket, some cute shops and an ice cream parlor.
Lots of bars in the Gracia area and restaurants too.
The hostel was absolutley fine, no complaints as such.
However - the check in tim is 1PM. We arrived at 2.30PM and our room wasn't actually ready as it was still being cleaned, we waited for about 15 minutes. This would have been very annoying if we had actually turned up at 1PM, with nowhere to leave our stuff.
Also, the reception desk isn't manned throughout the day, even when we checked in at 2.30PM there was no one to help us in. I had to call the number on the door and speak to a man (who knows english luckily) and he gave us a code for the door to open it.
The last four digits of your reservation number should be the door code but we booked on expedia so we didn't have that type of code.
This wasn't too much of an issue as we checked in ok using the machine.
The bathroom is small and beware, the shower curtain needs to be folded under so it doesn't flood the bathroom. It includes a bottle of shower gel/shampoo, so bring toiletries.
Keep an eye out when you first arrive at this hostel, we we walked around for 5 minutes unable to find it, it has no sign sticking out and it just a normal door with a cage thing over it and a sign above. But it is where google maps says it is!!