This place came highly recommended by Lonely Planet, but it was a terrible disappointment.
The owner was a real business person, and I was asked to pay upfront and charged NPR750 for a night, with guarantees of wifi in the room and hot water. The wifi was only available on the ground floor, and hot water only scarcely available. The room was dark, with aged walls and torn flooring. The beds were hard and dirty, and there were lots of mosquitoes. The washroom was damp and dark. My room was situated on the third floor, just above the generator, which was loud and smelt of diesel burning. I've been to a few rough places during my backpacking through India/Nepal, but this was really the low point of accommodation. In the middle of the night, I left the Lumbini Village Lodge even though I already paid for the night and went to Buddha Boomi, which is close by, much cleaner and even cheaper!
The location is pretty good, as it is right inside the village and close to restaurants.
They do have a travel agency next door, which is part of the family business. The agency does provide helpful information and relatively competitive packages. I recommend bargaining hard to get the best deal-- especially the tours of the surrounding area.