Transaction log restore hourly
Can you set database to No Recovery, apply transaction Logs, then set to Recover. Do that every hour? is that possible?


No .. once you recover, you cannot apply transaction logs anymore. You have to start again.

What you can do is ... apply transaction log and have the db in standby using ..
 restore .. with Standby (available for read queries).

RESTORE LOG MyAdvWorks
   FROM MyAdvWorks_log1
   WITH STANDBY = 'c:\undo.ldf'
GO


Alternatively, you can also ask the vendor to compress the backups to reduce size.