This is the best bargain in town. At $26-30 US a night for a double, it's within reach of backpackers who want a little posh with airconditioning and television (watch those telenovelas!), and all the quality for a third the price for business travelers used to pricier chains.
It's a nice old colonial building with four courtyards inside, all with fountains and foliage. The older rooms are high-ceilinged and comfortable, some of the newer ones in the new wing pretty much resemble a Holiday Inn.
The Plaza out front is no great shakes, but is better than just a row of buildings--and it's just four blocks up Degollado to the famous Teatro Degollado, arguably the most famous and influential theater in Mexico. Two blocks further and you're on the Plaza de la Liberacion--Plaza Tapatia to the right, the Cathedral two blocks to the left.
Right in the center of things, yet fairly quiet (avoid the rooms over on the Sanchez side, where early buses can disturb you, though) and definitely gracious and comfortable, especially at this price.