I stayed in this Hotel with my wife and 2 teenage kids in September 07.
We needed 2 rooms (not uncommon if you need 4 beds in Germany) and came by train. so the hotel was chosen on price and distance from station. We also wanted to stay in the Old-town district as it is a nice location..
Pros : Staff were very friendly and helpful. They made sure we were happy with the rooms. Breakfast was generous, as is to be expected in this country, served in a quaint "stube" and they have a specialty of fried egg and bacon IN toast which is unusual for Germany.
My kids called it the "Bear Hotel" as the hotel has a Teddy bear theme throughout. Rooms and bathrooms were clean. The location is very convenient to station, shops, eating and drinking and town sights, though still quiet for sleeping.
Cons: Staff leave you in peace, though some travelers that require a lot of help may feel they "disappear" for long periods. (I didn't mind it myself.)
There is no lift and a narrow staircase. If staying on the third floor, Luggage could be an issue for some.
Rooms are spartan and no fridge. Though this is typical in this price range in Germany.
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