I've already stayed twice at this hotel, which is reasonably priced by (the high) Shimla standards. I paid 940 Rps. The room is small, but confortable. The TV has BBC World which has disappeared at most places in India. Of course, you can see hundreds of customers have passed through those rooms already.
It is a bit away from the center at a quiet place. You can walk to the railway station and also down to the new ISBT (coming up from the ISBT is another matter).