Not enough for what you pay
I've stayed at Arnott's Lodge twice: once in 2004 and again in 2007. Three years ago, I felt it was a good hostel for what we paid for a semi-private room ($40.00 night). It was a cheerful, friendly and busy place. This year, I had the distinct impression that the Hostel had faded in quality. Also, we paid $60.00 per night for a semi-private room and had to ask for towels.
The three sweet-looking women pictured on the website actually work there, but they were uncommunicative, unwelcoming and when I asked a question, they talked to each other, never to me directly. I wouldn't say it was "bad" customer service...just unfriendly and uncomfortable. The three internet terminals were all out of order. Our bed was clean, but the sheets were so threadbare you could read a book through them.
The room and bathroom were clean enough, I must say. I got the feeling that Arnott's has seen some rough customers and has become less welcoming as a result. A sign posted at the office described my signing in a as a guest authorized them to do a background check on me if they wanted to.
Three years ago, there was a clever tree-lanai, strings of cheerful lights decorating the shared tables area as well as orchids here and there and a table where travelers could leave items to exchange. All of these were missing this time around, which made the place somewhat less inviting.
I've always been a budget traveler and I've NEVER traveled in luxury. I have pretty low standards compared to many people.
I think Arnott's would be an okay place to stay even with these criticisms, if only it were less expensive. In the idea of "You get what you pay for," I feel like it should be less expensive.