The Seaway Hotel is really a hostel. It's the closest thing you'll find in Duluth to a 'backpackers hostel' that you'd see in Vancouver. It's on 20th Ave W & Superior St (downtown is 6th Ave W - 6th Ave E; so it's about a 2 kilometre walk or bus ride) while the bus terminal is on 44th Ave W. All buses in Duluth run along Superior Street (buses have bike racks) which is right outside the hotel entrance. There's a convenience store a block away as well as a few eateries. If you're a true backpacker there are trails and trails and trails - about 6-8 blocks uphill is Skyline Pkwy. which takes you eastward to the trails around Hawks Ridge, Amity Creek and Hartley Centre; or you can go to the waterfront and hike the Lakewalk, which goes from 5th Ave W - 70th Ave E. Round trip = a half marathon.
The rooms: I've roughed it in Toronto, Vancouver, Niagara Falls, Chicago, etc. so the Seaway doesn't phase me (locals refer to it as the 'end of the line') but if you're an urban traveller, well, this is nothing. Rooms include a wash basin, closet, bed, etc., there are a few washrooms down the hall with showers and such. I found the second floor to be very quiet.
If you plan to stay in Duluth for a month or longer, which I did, you'll pay a deposit you get back ($300) and the room for the month is $252. Not bad, but again, keep in mind this place is not the Four Seasons. The last review is right, they don't do nightly rentals, but it's more of a weekly/monthly kind of place. Other tenants here are pretty normal but there are a few dodgy characters as well. If you have common sense you'll know who to stay away from.