We booked as a package bus ticket and room for 600 baht and the pictures of the bus were nicer than the bus. We got in at 6 am and they gave us 2 pie es of white toast and tang juice as the breakfast that was guaranteed to us with he room. It took 40 minutes to get into our basic room without carpet/ only concreat floor. Overall the room quality is okay, but the location is about a half hour walk from old Chiang Mai and a solid 15 minute walk to the Night Bazaar, which they advertise as being right around the corner. I would advise people not to book hotel and hostel together, there are plenty if cheap room options right in the center of old Chiang Mai.
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