We stayed 2 nights in this hotel in the beginning of may 2006 and paid 52 EUR per night, a pretty good deal. Although its situation is a bit tucked away from the busy action of the charming old town, you can find nearly everything next to it ; a big supermarket, several bureau de change, the Yemenia office and even a bakery right next door. It stands exactly on one side of the huge city stadium, about 1 km upstream of the wadi Ayqah, if you come from the corniche. The reception is cosy and the service efficient. Everything is new and functional. The room is large will all amenities you'd expect from a 4 star hotel. The bed is very comfortable and also very large, at least to our european standard. Looks like the interior has been designed by the architect who decorated the Disney's sleeping beauty room ; from golden door handles, to enormous Louis XVI armchairs, and art deco Lalique style lampshades make us feel like royal characters in some soap operas... Like it or not, you have to agree it is VERY comfortable. In the evening, we walked all the way to the old town for dinner, along the wadi, then along the corniche and it took about half an hour to do those 2 km trip.
All in all, a very good option if you don't want to get bore in some tourist-only place, like the holiday inn, 7 km away on the road to the airport. We did not hesitate and did enjoy our stay here.