We arrived at Colonial House on Calle Olmedo around 3 am, originally scheduled to be in before midnight. Flight landing was delayed due to fog. The taxi driver Colonial House sent for us at the new airport outside of Quito was kind enough to wait for us. The volunteers who live and work at the hostel were great. Tired and cold they let us skip the formalities and took us right to our room to get some sleep and deal with the rest later. The staff was very friendly and helpful throughout our stay and knowledgeable of the area, taxi and bus fares, what to do and how to get around. They kept everything easy going and laid back.
Our first night, we were given a different room, two beds, which had an older and more rustic appeal, with a view of the Quito angel and the courtyard out the bedroom window. The following day we were moved to a private room with one bed, wood floors, with a great view of Quito’s famous basilica from our balcony doors. Both rooms were clean and comfortable. While having common areas on each floor is a nice concept, it also results in our only negative comment – being that the noise can be significantly loud with concrete walls, preventing sleep until all go to their rooms. Coffee and tea are free all day, however the coffee is instant (somewhat disappointing in a country that produces coffee).
Regarding location, there are two areas of Quito with a concentration of hostels: Mariscol Sucre is geared more for the younger generation looking for 
nightlife and the club seen, with a more modern architecture. Colonial House is located amongst narrow cobblestone streets of colonial architecture, and walking distance to La Basilica, the charming historical streets of the La Ronda neighborhood, and Plaza de la Independencia.
However we should note that staff, friends, and reviews all warn that the character of Quito changes near sundown, with plenty of robbery stories. The hostel staff advise guests to wait inside for taxis, rather than curbside with luggage. Warnings also include not walking with luggage to the bus and metro terminals, nor being out in the evening with cameras or valuables, and to carry only passport copies – not your passport. We had no problems this trip, but everyone we met knew people with a Quito theft story, be it cell phones, cars, money or otherwise. Their stories applied to various locations throughout Quito, not just specific to our location.