Blue Diamond is located 200 yards down a Thamel alleyway lined with souvenir, shawl, clothes and convenience stores. The live music scene is 10 minute's walk away. If you're passing through and want to be close to the action - this could be your place.
Despite its location, the hotel itself is tired and not well maintained. I thought its cleanliness (esp. bedsheets and carpets) questionable. Food is average and restaurant service, slow. There may be a curfew for guests returning late at night - which is problematic in a neighborhood like Thamel.
On the upside, an open courtyard with seating arrangement provides an interesting space for meeting travelers, enjoying a drink or reading a book. The management seemed helpful, but not the most efficient in the world.More