This is just part of the Nomad money-making enterprise. They own two massive buildings in the city, a short walk from each other. Because Wellington is so busy (all hostels are booked out the day before often) they can get away with offering very little at a high price. Everything cost money here: crappy excuse for breakfast, extra $5. You want wifi? It'll cost you $4 for 24 hours. You want to leave your bags at the hostel for the day when you checkout? Extra charge. You get the idea.
The rooms, hallways, and kitchen are grim as. Unfortunately this may be the only option left for a traveller not planning too far ahead (as was the case with me), but you're better off looking for a host on couchsurfing or meeting a nice person on the street or in a restaurant to stay with. Avoid if you can.
The one alright thing is the staff: they do the best they can, though you can tell that this is a corporate enterprise with tons of rules and regulations the staff have to follow.
All in all, do your best to avoid giving money to this hostel monopoly. You know the CEOs and shareholders are making a fortune off poor travelers, offering little at a high price. AVOID
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