The area is a bit run down, but you are only two subway stops from all the fun in the Namba area using Dobutsuen-Mae (exit number 4) and you can get directly straight to the hotel in about 45 minutes from Kansai Airport, getting off at Shin-Imamayi (East exit) and walking for 5 minutes. The hotel is in an area where there are many cheap hotels in the 1000-2500 Yen range clustered together.
Hotel Kaga has small rooms, which are clean, have a tv, fridge and free wifi. You also get a ticket to the bathhouse around the corner. This is a great base to see Osaka using a one day subway pass for 800 Yen (600 Yen at weekends) and also Nara, Kobe and Kyoto if you need to keep costs right down while having your own room rather than a dorm. The people who run it are friendly and helpful.
I've stayed here a few times now and noticed a lot more foreigners staying in this hotel and area recently. Khao San Rd it isn't but who knows what the future holds. It could do with a lot more notices, backpacker-info, banana pancakes in the vending machine etc.
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