Stayed here during my recent visit to our Australian office. Highly recommend it.
The location is fantastic. 5 mins walk from St Kilda Beach and the St Kilda Sea Baths (perfect for a morning constitutional swim). There's a tram stop (Number 96) pretty much outside that'll take you directly into the heart of Melbourne.
A great range of bars and restaurants along Fitzroy Street as well as the hotel restaurant being very good.
Rooms are good quality with all the necessary facilities.
Couple this with a bargain price when I booked this with my flight through Expedia and I was a very happy traveller.