This was a new hostel when I was there in 2009, and I got to stay there as a guest of Nomads. I was traveling with a group of people who were already staying there, and this place blew my mind. The hostel has a huge kitchen (restaurant sized), top-notch showers (with great water pressure) and toilets, and a large lounge, and most rooms have balconies. The pillows are thick — the manager told me they change them every few months to keep them fluffy. How about that for service? Moreover, unlike most hostels in New Zealand, this one doesn’t have a bar, which means you can drink in the hostel. This meant that a lot of people stay around socializing at night instead of spending money at the bars. Moreover, the hostel hosts activities every night (including a $10 pub crawl) and has a free dinner and quiz night on Sunday.
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