This hotel looks very grungy from the outside, but is great on the inside! The staff is very friendly, large rooms are very clean, and great breakfasts! Highly recommended!

The hotel is relatively close to the center (10min walk), with fair rooms and helpfull staff.
As mentionned by others it is situated near a gas station, but this is no trouble at all, and rooms are very quiet.
Ask for a non-smoking room if you are a non-smoker, as the first room I was given had a strong smell, but I was offered to change without any problem.
Breakfast is a buffet of fair quality.

Hotel Friuli does a good job of cutting back on frivolous things to be affordable but comfortable. My only complaint was a lack of ironing facilities in my room (they offered to press my shirt in the morning, but I am accustomed to having an iron in suite). Breakfast was very nice, especially considering the reports I had from colleagues at other more expensive hotels in the vicinity. I had a room just above the front entrance overlooked the heavy traffic corridor, but the traffic is very light in the early morning and evening, so it wasn't a problem. It's approximately a 5 minutes walk to the edge of the old downtown core, then another 5-10 minutes to the castle.

In few minutes walkings you can reach the downtown of Udine, or you can take the bus to reach the railways staion in few minutes as well.
The hotel is just over a petrol station but no noise at all.
The rooms are very roomy and clean. Good breakfast buffet with a lot of sweet stuff for a tipical italian breakfast (brioches, handmade cakes, biscuits, cookies, bread, marmelade, juice, coffee, cappuccino and so on) and just bread and salami if you want continental kind of breakfast.
Free wifi in every room.