I don't entirely agree with the negative reviews below mine.
Arusha is a much more touristy spot than most in Tanzania... it's the hub for most safari companies and trips to Kilimanjaro, so hotels etc are bound to be a bit pricier than you'd like.
My friend and I stayed in a four-bed dorm for $12 per night each. This would/should have been fine, except there were two Danish guys sharing our room and there was only one key to the dorm... we all left at the same time in the morning, they got back later than they'd expected and we had to wait nearly 2 hours to access the room (the receptionist claimed that she couldn't find the staff key to the room).
Upstairs, the restaurant is really really nice. It looks out on to the street, and is a really nice place to sit and read during the day if you have time to kill.
Breakfast, to an extent is included... but the free portion amounts to very little so if you're a breakfast person you'll need to pay more to supplement. Also, the menus are WAAAY overpriced, so consider eating elsewhere! Seriously, almost like European prices!
There are computers and in theory there is internet access but... imagine paying for an hour and only loading up two pages in that time... it was that slow!
The rooms were fine... basic... my friend and I returned after a week-long safari and stayed in a twin room. The a/c worked, but it did seem a little like a prison cell: grey walls, no decorations (there was a chest of drawers though).
A major plus was... HOT SHOWERS, 24/7! Having had a no-frills trip up to that point and returned from a camping safari, the hot shower meant so much to me!
The staff were quite helpful, nothing special but did their jobs.
Also, if you're looking for a safari company, you should consider Kindoroko Tours, whose office is in the reception of the hotel - cheap, reliable and in four days we saw the big 5 - what more can you ask?!?
It's very close to a Lloyd's bank, lots of ATMs, a supermarket... extremely convenient for the Scandinavian Express bus depot and not far from the hospital (I got malaria - ugh).
In short, we met people who paid the same as us at other hotels in Arusha and had far worse experiences... you should consider this place.
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC.