This is not the hotel for someone expecting luxury resort accomodations and service. But if you are in St. Barth because of its beautiful uncrowded beaches and not the ostentatious display of wealth, and if you would rather save your euros for delicious food and fine dining experiences, then this is the place for you.
We got rooms facing the harbor and were rewarded with nice sunsets every evening as well as interesting people watching. There is a small grocery store down the street with better prices than Match, the larger supermarket by the airport. There is a very well stocked pharmacy and a good bookstore/magazine stand down the street as well. At night you can stroll through town and try a wide variety of bars and restaurants. We found this convenient since we did not want to drive at night on the island's windy roads.
You can opt to eat breakfast in the hotel (8 euros), or you can keep yogurt and fruit in the mini fridge and then have coffee next door at Le Repaire.
The hotel staff is incredibly nice and friendly, they even helped us make restaurant reservations. The desk closes around 5 pm so you never have a feeling that someone is keeping track of all your comings and goings. We also rented our car directly with the hotel.
As another reviewer mentioned, the hotel is in a noisy location. I came prepared with earplugs, which really saved my trip, but I am a light sleeper. Traffic quiets down significantly at night but you can hear loud mopeds / vespas late at night.
Finally, I would like to warn fellow travelers not to use the "public" pay phones on the island. There is one right outside the hotel where you can insert your credit card to make international calls. A 3 minute call to the U.S. was $58!

The hotel is right in the heart of Gustavia and the owners and people that run the hotel are very nice and professional. The room we had was quite large as we were in a triple room, and found everything to work very well. Air conditioning was great, as was the room. Nice to able to walk to the various restaurants at night and sightsee during the day. They also arranged for us to rent a car and this worked out very well for us.

Room is very basic, but a great value for St. Barths. The shower we found to be a bit dirty, but the rest of the bathroom was in good shape.

We also liked to be able to use the outsde terrace, and it was nice socializing with the other guests. For a short stay 4/5 days this is best place to stay to visit the island.

This little jewel in the heart of Gustavia is wonderful. We always get the rooms on the harbor side because it's great to sit out on the porch that surrounds the hotel and watch the town activity as the sun sets over the harbor. Cruise ships outside the harbor light up and the scene is quite beautiful. There is some road noise but that isn't too bad on the top floor. There's a wonderful breakfast area with a few tables. We never eat at the hotel but at night you can bring your wine and nibbles out there and talk to other guests as you relax. Rooms are not huge and are basic but extremely clean. You can walk to Shell beach, at least 20 restaurants, great wine store, grocery, and great, if expensive, shopping. Price is very low for St. Bart's or any Caribbean destination. Especially low for St. Barts which tends to be way on the high side.
There are small refrigerators in the rooms and ceiling fans and all are air conditioned which you need at night since mosquitoes will come in if you leave the door open at night.
Best low priced restaurants in Gustavia are 1. Eddy's-romantic, caribbean flavor, pretty cheap for what you get 2. Le Repair-right on the harbor, moderately priced, good view, and better than average food 3. Le Creperie-great salads, sandwiches and crepes. Very inexpensive. Very fresh ingredients. 4. Andy's hideaway in St. Jean-several different kinds of pizza, salads, cheap dinners-all the rum you want for dessert. Food is good but not outstanding. Pizza very good and lots of choices. 5. La Petite Columb-bakery in Gustavia and Columbier-2 locations. Wonderful pastry for breakfast, dessert. Good coffee. Cheap. Several kinds of sandwiches and large ones that can be shared. Each day a different entree but only open until about 2pm. Entrees can be extremely good, different every day and very cheap! A lot more but these are the ones we like the best. There is no bad food in St. Barts so don't worry about going to the less expensive places.

This is the worst Hotel
The Room is dirty, the bathroom was unclean- shower curtain was yellow, the walls are paper thin- so good luck trying to sleep at night. The room looks onto a hall way, there were ants already in my room, when i arrived, the room was filled with bug spray that gave me a headache, the hotel manager was very rude and didnt want to hear any of my complaints but just wanted my money- when i wanted to leave early, The manager doesnt care about his guests and has no hotel experience. The hotel has no parking and good luck trying to to find parking in Gustavia during high season, every parking spot is filled in Gustavia during high season, whats the fun in having a holiday and living in a cheap hooker hotel. The rooms are small, the pillows were hard, it felt like i was in a prison cell. I felt very unsafe staying in the room. You have to walk up alot of stairs with your bags to get to the main lobby, then you have to walk up some more stairs to get to your room, and they never helped me with my bags.