Tallink City HotelvsOldHouse Hostel
Both properties are highly recommended by travel writers. Overall, OldHouse Hostel ranks marginally better than Tallink City Hotel. OldHouse Hostel comes in at #25 in Tallinn with positive reviews from 2 reviews such as Rough Guide, Lonely Planet.
Tallink City Hotel
 DK Eyewitness
 Lonely Planet
A Laikmaa 5, Tallinn 10145, Estonia
From $52/night
- Bar/Lounge
 - Free Internet
 - Room Service
 - Free Breakfast
 - Laundry Service
 - Concierge
 
 "This sophisticated business-class hotel in the city centre has a range of spacious, well-appointed guest rooms." 
 "A one-two combo of impressive rooms and perfect location makes this a winner." 
 i 
As for the views, ask for a room facing the city; you'll either peer into a shopping centre or see the Old Town skyline; on the other side you face a drab courtyard.
OldHouse Hostel
 Rough Guide
 Lonely Planet
Uus 26, Tallinn 10111, Estonia
From $11/night
- Free Internet
 - Laundry Service
 - Free Parking
 - Kitchenette
 - Fax / photocopying
 - Baggage storage
 
 "Run by the folks at OldHouse Guesthouse, this high-quality hostel on the northern edge of the Old Town has six-bed dorms... immaculate bathrooms and a TV room." 
 "One of the city's most reliable sources of accommodation, Old House rarely fails to please... There's something on offer for everyone." Full review
 i 
Don't go by what Old House calls 'guesthouse' or 'hostel'; in fact, what they consider their guesthouse (Uus tänav 22) has much more of a hostel feel than their more serene hostel (Uus tänav 26).