Literally my favourite hostel I have ever stayed at. Yes, the rooms are small and the walls are thin - it's a Thai building, what would you expect? But it's immaculately clean, the beds are super comfortable, and the owner and staff are extremely friendly and helpful. It's also super duper cute! Stained glass windows and brightly coloured pillows.
It's easy walking distance to several places in old town Chiang Mai including the Sunday evening market, close to delicious (and cheap!) food and coffee, and close to convenience stores.
It's not directly on the main street so it's quiet - but still easily accessible.
Would give Lanna Hostel 6 stars if I could. Love it!