this note may be late, and it regards not hostales but private homes that rent rooms. There are several on Calle Parra in Nerja that are modest but excellent. One can ask at the candy store on the corner (at the high end of the street where the numbers start) for a suggestion, the candy store owner knows everyone who has rooms to rent by the day or week, (their main clientelle are language students). I did this, got a simple but clean and cozy room on the roof with an ocean view, after a mild cross examination by the lady of the house - "and are you and your friends sober individuals?" I go there for a couple of days once a year now and love it.