Awesome location. It's just a bit off the beaten path, in a nice quiet neighborhood, but its really only a 5 minute walk to the Circular Quay. When we first arrived it was a bit strange to check-in since it was after hours and the desk was closed. The room and bathroom were clean and comfortable. Don't expect a luxurious bed or anything, but it was comfortable enough. As people have mentioned, the bar downstairs does get loud, but it's a bar, that's what happens. They close by 11pm on weekends, so it really wasn't a big bother for us. Also, it is quite a climb up to the third floor rooms (its really the fourth floor).
Overall, great location!