International Backpackers Hostel
The Hostal Versalles belongs to the Hostelling International chain, and is close to the bus station, which is very handy if you arrive late at night like I did. It's also quite close to the city centre, which is at 2500 metres above sealevel and has a nice, temperate climate. It has a pretty nice garden. It features an internet cafe, telephone booths, laundry, etc. It's very close to "The Court", the largest market in Cochabamba, which I recommend visiting.