We stayed here for 2 nights as a family of 4 (children are 9 and 7). The hotel may be 2 star but you're getting 5 star location by staying there. It is basic but the hotel perfectly suited our needs. The room had 4 single beds, a tv and a toilet/shower room. Whilst hanging space was limited and there wasn't a cupboard or set of drawers for clothes we didn't find this a problem. We didn't have a canal view either but again this was no big deal. The stairs are tight but we were in the first room on the first floor so didn't have far to go anyway. We didn't have breakfast at the hotel although the breakfast room seemed nice enough serving the usual continental type food. Everyone was friendly and helpful and although there was no luggage storage as such we were permitted to store our bags in the breakfast room as we arrived well before check in and were leaving well after check out.
We used the tram from Centraal station to get there, we took the number 17 to Westermarkt, only took a few minutes and walked back over Keizersgracht to get to Herengracht, again the walk only took a few minutes.
As I said this is the perfect location. Not only because it's on one of the nicest canals but also because it's well away from the red light district if you're traveling with children. Anne Frank huis, the Westerkerk and Dam square are all only 5 minutes or so walk away (albeit Dam square is in a different direction) and the Rijksmuseum is a very pleasant 20 minute stroll along the canals.
There is an abundance of cafes, restaurants, bars and shops in this area covering a whole range of styles and goods. A couple of places that we ate at are worthy of a mention, Pancakes on Berenstraat, lovely breakfast, Luden on Spuistraat, nice meal in a relaxed setting and
IL Panorama at Herengracht 194, again a nice meal in a nice place. It is worth pointing out that the restaurants that we visited did not provide a children's menu.
Also, if you haven't been to the Netherlands before then you will find no language barrier as everyone speaks excellent English.