Blue Hostel stands on Haad Rin Road in Haad Rin, at the southern tip of Koh Phangan. Nearby beaches include Haad Rin Nai Beach, 100 m away, Haad Rin Nok Beach at 450 m and Leela Beach at 500 m. Ban Haad Rin is 200 m from the hostel. Haad Rin has beach bars and nightlife, while guests describe the hostel's immediate surroundings as quiet.
Samui International Airport is 12.8 km away. From the airport, the piers at Bangrak or Maenam are a 10–15-minute transfer; the Haad Rin Queen sails directly from Bangrak to Haad Rin in about 20–30 minutes, around six times a day. From Thong Sala, shared songthaews travel towards Haad Rin along the island road, which climbs steeply on the approach. The ferry terminal is 200 m from the hostel. Free public parking is possible nearby, and street parking is available.
Swimming, snorkelling and diving are among the activities associated with Haad Rin's beaches. Haad Rin Nok hosts the monthly Full Moon Party. Haad Yuan, 1.9 km away, and Haad Khontee, 1.3 km away, are further beaches; Haad Yuan has no road access, so visitors reach it by taxi boat from Haad Rin. February to April is generally the driest, calmest period around the Gulf, while the east coast can see rough seas in November and December.