As most other reviewers have already said, the rooms are huge, which is a major selling point. They're also clean, airy and well-lit. Judging by room quality alone, it's hard to see how this is only a two-star - I've stayed at three and four star hotels in several countries and got rooms that were much worse than this.
However, by average European standards it is priced like a three or four star. The price depends on the day (much higher on weekdays), so ranges from reasonable to quite expensive. Although the reception area really does give the hotel the look of a 2-star.
I was told the breakfast wasn't worth what it costs, so didn't bother with it - there are plenty of nearby alternatives, so that seemed like the right decision.
Internet is free and fairly fast, but it's annoying that you have to get a new password every day.
The location is fine, right next to the tourist office on a central square, a short walk from all the sights - but it's not that close to the station. About 15 minutes' walk if you're dragging a suitcase over the cobbles.
Staff are nice and helpful, and do speak English, but were happy to let me practice my broken French.
My only complaint about the room is the lack of towels - just one fairly small towel per guest. I asked for two more at reception, the receptionist kindly obliged - but the cleaners promptly took away the extra towels when we left the room, so I had to go back and ask for more. So somewhat careless service you might say.
Generally prices are very high in Montpellier (for food, taxis, hotels - anything except local wine, which is fantastically cheap). I did a fair bit of research before booking, and on a budget of 60-100 euros for a double, I couldn't see any alternatives to this hotel.
