Hostel Name: Che Lagarto Hostel Colonia
Address: 18 de Julio 487, Colonia del Sacramento, Uruguay
I stayed at the Che Lagarto Hostel in Colonia for one night. I picked the hostel as it was half way between the boat terminal and the old town area. Not that it mattered in the end as the town is small and you can walk everywhere. The hostel is less than 5 minutes from the terminal for the Buenos Aires boat.
There is not a lot to do in Colonia so you could visit it as a day trip. I wanted to stay there to break up my trip between Buenos Aires and Montevideo and this was a good way to do it.
I stayed in a 6 bed dorm which was roomy enough, but as with the hostels I stayed at in Buenos Aires the rooms and common areas lacked convenient power outlets. I had to plan out my recharging of electronic devices at these places.
If you are a self caterer there is a kitchen.
The inside common area is just some chairs in the hallway, but out the back there is a nice place to hang out.
A breakfast of cereal and toast is also provided.