We booked Bloomrooms based on TripAdvisor reviews. And it did not let us down. The location was ideal and bang in the middle of the city for roaming north as well as south Delhi. We stayed for 2 nights of sweltering Delhi heat and luckily the rooms with extra-soft beds, split AC and hot showers were a god-send.
If you want to explore the city, do make it a point to chat with Mr. Sushil Mishra, the Security Guard who will guide you on what-to-see, when-to-see, how-to-travel and will even help you in negotiating with rickshaws and tuk-tuk drivers.
One minor improvement to the room could have been a cupboard and a desk. So, may be I must have booked a Standard Queen room instead of a Compact Queen (room size is only about 150 sq. ft.).
Overall, you cannot get a better location than Paharganj and you cannot get a better hotel than Bloomrooms in Paharganj.
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