I stayed in this guesthouse for 6 nights with 5 friends (July 2013). It is a charming family-owned hostel offering rooms at a very reasonable price. We occupied two rooms at the first floor: both were clean and comfortable, although the furniture was a bit old-fashioned. The owners, who live at the ground floor, were cheerful and welcoming. The wifi is free.
A big plus of this guesthouse is the view: absolutely stunning! From the balcony, I could see the whole bay with the Lapad peninsula and I could appreciate its beauty at different times of the day. The other side of the coin are the stairs: 277 steps to reach the hostel under the burning sun is not for everybody (a big incentive to spending the whole day out!).
The main drawback of this guesthouse is the bathroom: there is only one for up to 9-10 guests. While most of the times we had no problems with that, some evenings the waiting time for a shower was quite long. On the other hand, the bathroom was cleaned frequently.
The guesthouse is not within walking distance from the Old City (around 40 minutes), however it is located in an area which is well-served by local public transport (main bus station and port at a stone's throw) and shops. All in all, I was satisfied with this accommodation and I would definitely recommend it! Good value for money.