We spent one night at the Hotel Rialto, formerly Hotel Douglas. Overall we enjoyed our stay. Rooms are quite spacious and comfy. The beds are great, the bathroom quite clean, and the location on Douglas is very convenient (walking distance to the harbor and the bus station). No breakfast is offered, but there are plenty of eateries nearby. We recommend Mo'le for breakfast.
Our stay had a few glitches, mainly due to clueless and sloppy staff. A basket was missing from the bathroom. No alarm in the bedroom (I used my cell phone; I would not want to rely on staff for a wakeup call). The desk person was positively unfriendly at checkup for no apparent reason. I hope this property will get a better staff (or do a better job training the one they have). Overall, a pretty good value for Victoria in August, and I'd definitely stay again.