Knowing what I know about Hakodate now, there are many other better choices in hotels. I would choose something close to the train station, where it's very easy to get around and there's much to do and see.
About Annex Tetora, the most striking thing is IT IS DIRTY and run down. I had never been to a hotel (especially in Japan) where the carpets had many stains and the wall papers were torn. My nose was congested during the 4 days I was in Hakodate. My husband didn't feel comfortable moving the furniture around because of dust and my grandmom didn't feel comfortable taking showers in the hotel.
The staff were nice, but most didn't speak much English. We got what we needed - a cheap room to sleep for 3 people, but I will not go back. Health is far more important.
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