Stayed here 10 days ago for 2 nights with a group of 13. This is the best place in town, so look no further. The location is excellent, the rooms are nice, the food is good and the service is average. They have several different categories of rooms, so book accordingly. This is the sort of place where it is best to pay a bit more. They have a very modern and new wing of rooms at the back of the hotel, and these are the best rooms available. The cheaper rooms closer to the reception are noisier and older (i.e. spartan). The modern rooms have lots of space, as well as tv's, etc. No need for a/c in Wamena, so don't worry about it. No need for fans either. The staff are very helpful, though not always very useful. Slow is the word. The food in the restaurant is very good, but the service is terribly slow! So, beware. There are only a couple of suitable places to eat outside of the hotel, so you will likely end up eating here at some point.
The hotel is just 5 minutes from the airport, and there are a few shops nearby for souvenirs or cold drinks and snacks. Don't come here looking for a pool or gift shop. There is no elevator. But, you can get laundry done quick and cheap. They will even clean your boots or shoes for a fee after a muddy hike through the valley.
I would rate this place as a 3-star hotel, and would recommend it to anyone. Not sure where else you would want to stay, unless you are really on a tight budget! Also, as security can be an issue in Wamena, there is no benefit in trying to save $$ by staying somewhere cheap.