After having surveyed up to eight different hotels in the block, we finally decided to spend 1000 Rs for a non-A/C room in this hotel, as all other options seemed worse in at least one aspect.
Compared to the rest of the bunch, Sitara Niwas was cleaner, bigger, had softer beds and working tv and relatively okay staff. Hot water worked (but who wants hot water in May?) and so did the wi-fi. About 7 3/4 minutes walk to Golden Temple.
There's a very similarly named hotel around the corner - Sita Niwas, which was cheaper but only had box-sized rooms.