This basic little 2-star has the advantage of being high up in a hill-top town, and it's in a very quiet backwater spot. You still need to hike up some quite steep steps to get to the historic centre of Perugia, but those steps are quite a spectacular sight.
At the top of the steps are some very inviting restaurants, as a just reward for your efforts!
The Hotel San Sebastiano has simply furnished rooms. I stayed in the cheapest single room, with the shower room off the corridor. The bed was firm and comfortable, and the room was perfectly clean. Most guests eat breakfast out, but the owner (who was very helptul to me in providing directions to places) said he could provide breakfast for an extra 3 Euros.