Definitely not a highlight of my stay in Iran, but works as an accommodation in Bam. I was heading to Pakistan and was initially planning on staying in Zahedan, but decided to stay in Bam instead.
The owner and his son are nice guys and speak good English, but as the previous reviewer has commented, they try to overcharge for their rooms and the rooms are not in a great state - but are still clean and comfortable.
Breakfast is not provided, wifi wasn't working when I was there, but they let me use their computer/cable.
Previous review mentioned rooms being overpriced - Iran had a massive currency devaluation in October 2012, which is few months after the latest Lonely Planet guide went to print. If you check the guide, they assume 1 USD = 10k IRR, but the current rate is around 38k IRR. So everything became much cheaper for foreigners. Given associated inflation, most hotels in Iran have raised prices, because even if they increase their price 3x, you're still getting it cheaper than before, that's why comparing prices you get quoted in the hotel vs. any guidebook doesn't make any sense.
However make sure you negotiate, given what I've seen during my stay in Iran, I was happy to pay 250k IRR for the room. They also changed money for me because bazaari money-changers were already closed. As previous reviewer has mentioned, their rate wasn't great (around 5% commission on their end), but given I did not change huge amount, this wasn't a big deal. If you want to change larger amounts, go to proper money changers in a bigger town such as Kerman.
If you're heading to Pakistan, the owner will arrange a police escort for you to take you to your bus or shared-cab.