PROS: extraordinarily friendly and helpful (Thai) staff; great value; large, clean room; 15 minute walk to Walking Street, best free wifi yet in Thailand. The tiny alley the hotel is on is very quiet (actually heard birds singing, no soi dogs!) although the hotel itself is noisy. Hotel does not serve food, but there is Thai street food easily available nearby on the soi, and a very good air-conditioned Thai restaurant on the corner of 3rd Road.
CONS: be aware that this hotel is located in the Arab Quarter, with two small nearby streets devoted to gay nightclubs. All of the restaurants on the soi are Muslim, and in the larger neighborhood, mostly Indian. Virtually all of the guests are Arabs, who sit outside their rooms and talk loudly for hours, when they're not going from room to room banging doors, playing music and shouting to each other into the night.
BOTTOM LINE: I found this hotel to be very nice, if a bit shabby (some peeling paint and warped doors that rattle in the wind!) I rate it excellent if you're Arab or if you're a farang who isn't bothered by them.