Location is one of the most important factors when picking a hotel, short-term vacation rental or, in this case, a hostel. If you can't make your mind up between Palermo or San Telmo, why not choose a place smack in the middle: the Microcentro? There, you'll find the V&H Hostel Club, right around the corner of the Teatro Colon and the Obelisk. Great public transportation options right around the corner make it easy to visit all of Buenos Aires' many sights.
We walk down Calle Balcarce all the time, and have often noticed the colorful sign of Hotel Babel. After doing some research, I've decided this is the hotel that I would choose for a short stay in San Telmo. Not necessarily For 91 Days... for a longer stay, it's better to rent an apartment!