Stayed here for 2 nights in January 2014 and was not disappointed by it. We booked a studio room with a Queen bed. Size-wise, it was a bit small but it was okay. We were just a few blocks away from Chinatown and Swanston Street so walking around was no problem. Lots of eateries within walking distance of the hotel. And Queen Victoria Market is just up Queen Street.
If I were to nitpick, I would just say that the walls in the hotel are a bit thin. I could hear our neighbors chatting and laughing up till about 4AM. Other than that, for the price and location, can't really go wrong with this place.