We stayed there for 3 days at the end of Feb 2012. Friendly staff. We had room 2 which was above the archway. Old Portugese style building with dark wood interiors. Our room was lovely - well furnished with a 4-poter comfortable bed. Plenty of room. Large bathroom with good shower. Air con fine and ceiling fan.
Even wireless internet - router and a PC outside the room.
Restaurant provided good quality, variety and lovely outside setting in the courtyard if you want.
Great position - most places you are likely to want to see are a short walk away. We had a tuk tuk driver give us a tour for R50 but we gave him 150 cos he was so helpful.
The only sight drawback is that room 2 could be noisy at times. One night there was a noisy motorbike passing up and down the street. Another night the people in the room above arrived in the early hours and took an hour to settle in. The floorboards were our ceiling. So the next night we used earplugs and slept well.
Overall highly recommended and would stay there again.