My first impression of this hotel was "gloomy" but it fact it was a good room, comfy beds and a really nice bathroom. Location was ok being just a couple of blocks from either plaza. Despite our really early start they still provided breakfast. From memory it wasn't a bargain though. It might help first impressions if they opened a few curtains and made the entrance/corridors smell fresher.

heating is incredible 5$/night extra (you'd better buy a heater for the same price down at the market).
Breakfast is o.k. but they don't care if you're sitting in loads of dirty dishes.
Service is very poor and unfriendly.
Bathroom was not clean and not really cleaned when I told them to do better.
Not sure if towels and linen were clean...
Some rooms are very small and dark.
Free tea in the lobby.
No lift (and carrying your luggage up to the 3rd floor on 3800m altitude ist very tireing...).
Sometimes internet Service in the lobby - but owner nearly always occupies it himself.
If you're leaving eraly, make sure they're awake - I once was looked in in the hotel early in the morning...

From the moment we set foot inside this hotel, we could feel our very souls being sucked out of us. Cold, dismal, empty and echoey, functional beyond belief are just a few words that spring to mind when I recall the 3 - yes, 3 - nights we spent here last month. Thankfully we were only paying $25 a night, but compared to other places we had stayed in Peru, it was not good value. The breakfast was appalling, memorable only for the lack of food and taste. We only bothered with it one morning. The whole hotel had an atmosphere of abandonment about it - we returned from a trip one afternoon to find the whole place shuttered and locked!! There was one night we think we were the only guests staying and it wasn't hard to understand why. The location however was great - being so near to the pedestrian main street Lima meant we could very quickly escape the doom and gloom of our room.
Only book if it's the last option for your stay in Puno...

Stayed here for two night in July, when we came I had some problems with my leg caused by an allergic chock from mosquitos. The staff was very friendly and helpfull. The wanted to call a doctor, then they helpt with pizza delivery and one of the staff drove away to get us some Coca cola..lovely!
The rooms where ok, the tv bad, bathroom lookt oko but we had some problems getting hot water and leak from the bathtub.
Overall an ok hotell in a pretty boring and quite ugly town:)