We arrived at the Hotel Khayyam in the very early hours of the morning and had a very warm welcome. They even sent the taxi driver who tried to rip us off away with a flea in his ear.
The rooms are basic but clean (alhough it would have been nice if they'd emptied the contents of the previous occupant's bin before we checked in!).
Our double room (for which we paid around $40 a night and was in reality a triple) was comfortable and had both western (with dodgy plumbing) and eastern toilets, a good, hot shower and a fridge. I would note however that there is no air con and the room gets hot and is pretty noisy in the morning.
The breakfast was ample and the staff very helpful - they sorted us out with train tickets and a hotel in Shiraz and answered lots of our questions.
The location (in central southern Tehran) is good - although for lone women note the main street on which the alley runs off is mostly ful of car/motorbike shops/ garages and is very male dominated... more