Here's my solution when working with hex integers and not hex strings:
def convert_hex_to_ascii(h):
chars_in_reverse = []
while h != 0x0:
chars_in_reverse.append(chr(h & 0xFF))
h = h >> 8
chars_in_reverse.reverse()
return ''.join(chars_in_reverse)
print convert_hex_to_ascii(0x7061756c)