This place is really EVERYTHING you expect from a 3-star hotel in a city center. It is small, compact, clean and central. Our room was quite big and pleasant. The hotel staff was extremely friendly with the exception of one guy who worked night/early morning at the Front Desk.
Those of you who travel to major European cities frequently, know that location is everything. And this place has the perfect location. It is less than a 5 minute walk away from the city central trainstation, which makes it close to the city center and all the major sites. It is perfectly connected to all U-bahn and S-bahn lines and even has sufficient parking in the street in front of it. Many reviewers have indicated that the location is in a sleezy neighbourhood. Well, I've got news for you: If you want to stay in the vicinity of the trainstation, in any major European city, then you are going to encounter some prostitutes and sleezy characters. That doesn't however make the area unsafe, it is just the nature of the areas around major trainstations. If you are adults travelling by yourself (even females), one does not have to worry about the lively character of the area. It is safe.
The breakfast is good, and included in the already fair price. Rooms are clean, but please note that there is no airconditioning. Our room however, was equipped with fan. I enjoyed my stay here. And if locations means everything to you, then so will you!

Cloose to the central trainstation easy to find, close to the center of the city. Only negative is that there are some stripclubs in the neighborhood. Very helpful staff that speaks good english. Breakfast was better than expected.

We stay there for 3 nights and is true is next to the strip club but come on... you never hear something weird or the girls say something bad to you. The service was good and the people and rooms was nice and clean.

This is one horrible place. I didn't even stay the full night. Here's why.

1. Location
The location is so near to the main train station and is within walking distance to many of the historical buildings in Munich. But THE HOTEL IS LOCATION ON THE RED LIGHT DISTRICT, AND IS SURROUNDED BY STRIP CLUBS AND THE KIND OF JOINTS YOUR MOTHER WARNED YOU TO AVOID. I was there during the day, and already, the place was getting quite rowdy and noisy, with strange men loitering around the hotel's location. Do take this into account if you're planning on bringing your family.

2. Lack of Airconditioning
I visited Munich at the end of Winter, so you might be wondering who would need air conditioning, right? Well, air conditioning (in case you didn't know) actually ventilates the room. So without air conditioning, you're a done for. I entered the room on a freezing cold day, and found the room so warm and stuffy. I started to perspire when the air outside was 0 degC. Yes, zero.

3. Staff
I was served by some old man, who was superbly friendly over the phone. When I asked him about the air conditioning, he said that ALL the rooms were not air conditioned. When I asked him, what I could do, and if there were other rooms, he mentioned "fully booked, mumbled something. When I asked again, he mentioned something about "different rates". I said that if I had to open the windows at night, it would be noisy. HE SHRUGGED.

4. Security
I was assigned a room on the second floor. The window could be fully opened, and just out side the window, along the window ledge, was a small cladding / awning that lead to the first floor. Yes, ladies and gentlemen, not only are you located in a red light district, if you are located on the second floor with windows open to air the room, you could possibly expect additional "guests".

5. Size of the Room
Small. Really small. And mind you, when you swing open the toilet door, you will hit the toilet bowl. Yes people, the toilet door doesn't open fully.

Please, spend a little bit more and go to a better hotel. You've been warned.

I didn't read the reviews before booking the hotel, but since Hotel Italia is such a cheap hole, I only lost 49Euros from this adventure.