Zostel is good.
There are other hotels near the Zostel area which are good too.
If you want a cheaper version, there is another one to the north of Gokarna (Rambler stay). Well, Rambler is a little off the main beach, but a cheaper place. I like it because it's the only place where I found Indian food whereas everywhere else I could only find western delicacies.
Being a traveller, I personally like tasting authentic cuisines of the region that I visit, and western cuisine don't match what the temple town of Gokarna stand for.
Ps: food takes time to prepare as it is made to order. No beach view. It's a hostel. WiFi is poor across Gokarna as there is only one service provider across Gokarna. If you're planning to visit for WFH, stay near Zostel. If you want a cheap and decent stay, go for Rambler and commute to restaurants near Zostel in the morning for WiFi and 'western cuisine' (there is one Prema Restaurant in the Zostel area where you get Indian cuisine, but no WIFI (atleast when I was there) ) Happy tripping ✌🏽