We stayed here for two nights at the beginning of November 2011, and would not go back.
The pros are its in Old Delhi and very close to a metro station, and the hotel pick you up (for a charge) from the airport. The staff are also very friendly.
The cons - everything else really. We booked a twin room with a request that there must be two beds - we were given a double room. The beds were on separate bases but joined together. We asked for them to be separated and the hotel agreed, but it was never done. The room was so tiny that if it had been, we would not have been able to get in and out of the door to the room.
There was aircon which we had to turn off at night due to it sparking, and us fearing a fire. The hotel was incredibly noisy, mainly from noise coming from inside the hotel itself, all night long.
There were poorly patched up holes in the walls, which didn't give us any confidence that the air con and fan had been correctly (or safely) installed.
The hotel was supposed to have hot water. We got a trickle of water out for the first shower, but then the water stopped entirely.
My advice - don't stay here. At best it is a hostel, but should never be classed as a hotel. Whilst still relatively cheap, it is massively overpriced for what it is.