It's close to downtown and the barrio pescadero, in a working class area a little ways from the beach (15 - 20 minute walk). Although it's a few blocks from the train and bus station, the neighborhood was perfectly fine and safe, with lots of little bars and stores around and plenty of street life.
The hotel itself was a great value for the price: our room was spacious, clean and quiet, the service was impeccable, and the staff were very friendly and helpful. t's not luxurious, but it's better than most other places I've ever stayed at the same price point.