I stayed here for four nights over the weekend of Loy Krathong. I booked a couple of weeks in advance and some places were already full up, so I chose this hotel partly out of necessity. However, I was fairly impressed. It is definitely a proper hotel, not a guest house, although not an excessively fancy one.
The room was very slightly old-looking but clean and comfortable. The wifi and air-conditioning worked fine. The staff were helpful and let me leave my bag in storage after I checked out so I didn't have to carry it round town with me until I got my bus. There was no safe in the room but I was able to leave my passport at reception for safe keeping.
The location is pretty good; as you'd expect from the name, it is handy for the night bazaar and there are several bars and restaurants nearby. This also means it's fairly close to the river, which was handy for watching the Loy Krathong celebrations there. However, this does mean it's about a 15 minute walk from Tha Phae Gate. I guess you have to decide what's important to you, but it's by no means "too far" to walk into the walled part of the town.
I would definitely consider staying here on a future visit to Chiang Mai.
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