I've been to Neuchâtel quite a few times over the last few years, and have stayed at a few different hotels in addition to Hotel de l'Ecluse such as Beaulac, Beau Rivage and even Hotel des Arts. Hotel de l'Ecluse is a charming little alternative for the cost-conscious business or leisure travelers.
The hotel is located a bit up on the hillside away from the lake, but is within walking distance to the town center. It's best to take a taxi from the train station especially if you have luggage. There is underground (paid) parking right under the hotel for those with rental cars. You do have to climb a few steps to get to the front door from the street or parking level. Town center is within a 10-minute walk. The lakeside is within a 15-minute walk.
Most, if not all, rooms have a kitchenette. Cooking and dining utensils can be borrowed from the front desk for those inclined to prepare their own light meals. There's a supermarket just a short walk from the hotel towards the town center.
Room furnishings are sparse but well coordinated. Some of the rooms have special theme or motif so not all rooms are furnished similarly. There is no carpet so you might want to bring slippers in winter time.
Large persons beware: the elevator and most of the bathrooms are really tiny. The elevator fits really just about one person plus luggage. There's no bath tub, just a shower stall, in the bathrooms.
+ good values even at a low cost
+ kitchenette for light meals (or even just the mini fridge to store food/drinks)
+ free wireless connection (see also cons)
+ clean, uncluttered, well-maintained rooms
+ friendly and helpful staff (even if you don't speak French much)
- inconvenient access (stairs to the front door), definitely not for the mobility challenged
- tiny elevator and bathrooms
- most rooms have no views (not a problem if you don't care for views)
- wireless connection not always on (it seemed to cut out mostly between 11pm-8am)
- cold floors during winter time
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