I hate to say it but I think the Valhalla is the best Thunder Bay can do for a hotel at the moment. I'm optimistic about the new hotel being built by the waterfront. Nonetheless, the Valhalla is the best to be had now. Of course, that's provided you get a newly renovated room. In the past few months I've stayed at both a renovated room and one that hasn't been renovated.
If all that's left is an un-renovated room then I suggest getting a tent and sleeping outdoors. If you can get a renovated room then you should enjoy your stay. In 2011 people should be staying in hotels that appear to be from the 1980s. The rest of the hotel is very nice which adds to oddness of having the un-renovated rooms.
The food at the Valhalla is pretty good and they have two restaurants and room service. The service is acceptable but not outstanding. Of course, the Valhalla is in Ontario so don't expect outstanding service since Ontario doesn't know what that is yet.