That's a shame, Tamara, but maybe the hotel changed hands since I was there. Last time I stayed was October of 2003. We've been renting down on the coast since then...but it was still pretty nice back then. Too bad that it has gone down like that.
When we got there, we found the official youth hostel full, but there's another hostel/hotel, a few yards further down the alley (downhill). It's about the same price, but it seems WAY nicer! And it wasn't full.
I can't remember where the entrance was though. or what it was called :/
Only bug we found was a small spider, which I only remember because one of my travelling friends got a bit stressed. I don't think she likes spiders...lol.