This hotel was recommended to me by the hosts of the B & B in Oaxaca where I stayed with a couple of friends subsequently in our Mexico trip. It was described as clean, with small rooms and great location, and that's what we were looking for, nothing fancy. And for under $50 USD it was perfect. It was a short walk to the zocalo, the long pedestrian shopping street, and important for us as antique collectors, Los Sapos, just a few blocks away.
I read some of the earlier reviews, and while I suppose some of the unflattering commentaries may be somewhat valid, I think that if you're looking for a reasonably priced hotel with a great location, and don't care about room size and hot water taking its sweet time, then you cannot go too far wrong.