Every Buenos Aires barrio has its own accommodations personality: Settle in Puerto Madero and pretend like you never left the U.S. Lay your hat in Recoleta and experience a touch of Europe. Rent a spiffy apartment in Palermo and feel like being in your own home. So what is offered in San Telmo? Hostels and hotels are a grand selection of unique boutique pads. Popular spots like Casa BolÃvar and Boquitas Pintadas fall somewhere between old-world charming and 21st-century cool, while the Axel feels like it was plucked right out of the gayest corner of South Beach (minus the perfect view of the surf and surfers). On the plus side, you'll be close to most of BA's most popular tourist stops during the day. But at night, the streets empty out. So leave your valuables behind, and unless you plan on going local, get ready to take an increasingly expensive cab to the center of BA nightlife, otherwise known as Palermo.
If you still choose to stay in this neighborhood, the Hostel San Telmo is a good option: rooms fit up to 4 people (from $33 to $37), and the Hostel San Telmo also offers the rental of private apartments for $160 a day.
The Carlos Gardel Hostel offers pretty much the same services for around the same price, but is situated in the historic part of the San Telmo neighborhood.