Yikes. This was made bad by a few small things and one major one. During our stay, a pipe burst and the room flooded. It soaked our luggage and clothes, which we needed to bring to the airport, so we could not dry them out. Aside from offering additional towels, the hotel staff didn't acknowledge the problem on site and refused to offer any reimbursement towards the amount paid afterwards and instead said that if we returned, they might offer a discount.
The hostel was advertised on the Hotels.com website as a hotel called "Casa Dos Lucas," so it was confusing and misleading to arrive at a hostel instead. I booked on mobile, so I had no reason to think it was a hostel and not a hotel until I arrived, I had booked other hotels with the name "Casa" in them in Oaxaca that were in fact hotels.
Parts of the room broke, like the lightswitch.
Finally, the hostel also has front doors that lock people in and out, so there were a few times, like when we were trying to escape with our soaked luggage, when we couldn't leave until a staff member turned up minutes later.
There are MUCH better hotels and hostels in the city, look elsewhere!