We spent 2 days in Kyoto. The Piece Hostel has a great situation (5 minutes walk from Kyoto station), friendly staff, a nicely decorated lobby, and cheap draft beer. 🙂
The staff speaks a very good english, contrary to some other hotels, and takes time to explain how things will work when you check in.
Of course, for the price, don't expect deluxe suites, or fancy stuff, but if I ever go back to Kyoto, I'm sure I'll be back there.