We stayed here one evening and were satisfied with our room on the second floor. The room was a decent size and clean though the bath towels were a bit past their prime and had a funk about them.
Location was good as others have stated being about 5 min down the hill from the main gates. Breakfast was around €4 or €5. Our room had air conditioning as well which made for a good night of sleep.
Though we were satisfied with our stay, if we were to visit Toledo again we would most likely look for a hotel up the hill in the old town. Merely out of convenience.