As per other reviews, yes this place is a little odd: actually only ca 20 rooms on first floor over a street of heaving bars (by night, favoured by the young).
It can be cheap if you look for an online deal.
Eccentricities include the fact that there is a trick for getting the key to work - ASK or you will spend hours haunting the hallway and waiting for fellow gueststo return -- reception closes ca 5 pm.
Owner could be described as tempermental -- but he makes a fantastic breakfast including the best coffee in Berlin: unfortunately there seems to be an unwritten rule that you are only allowed one cup.
Everything they say about the pillows is true but not limited to this hotel: somehow the pillows don't seem to have anything in them -- whatever it is offers no resilience. Not good for sleeping but absolute hell if you are trying to read in bed or similar.
Re the area, this is very close to best restaurant streets and late bars in the East (but definitely not this street itself). Try the Nord-Sud cafe around the corner, Auguststrasse 87 for truly wonderful French cooking at ridiculous 7 euros for three courses. (Found myself saying to proprietor 'have you heard of capitalism?")

For 88 euro's a night this was more than I would normally spend on my budget hotel on Berlin but it was September and prices everywhere seemed high this year, I hadn't stayed in Mitte before and this seemed like a good way to justify the (to me) high rate. It is a budget hotel really, I don't think they have a non-smoking option, the room was small and a little shabby (cigarette burns on the carpet for example) but clean, lovely big fully opening windows but a pity our view was of the fire escape and the back of a pub/restaurant next to the hotel. The breakfast however was fantastic and the noise of the city was fine past midnight even with windows open during the early September heatwave. When you check in you are given keys for both your room and the main shared access door outside. not unusual for these small city hotels, the staff disappear at 7pm leaving only a porter type person but there were no problems with this. The street outside is fun and funky with a great mexican restaurant next door with half price food and cocktails between 5pm and 7pm which I would recomend if you are saving your pennies. Loads of other pubs and restaurants on the street as well.

Literally a 2 minute walk to the nearest S bahn station, Oranienburger Strasse and it's very central, nice view of the Fernsehturm from the street, I would recomend this hotel to budget travellers but try to get a slightly cheaper rate if you can!

We recently stayed at this hotel for 3 nights along with 2 other couples.The entrance to the hotel is slightly underwhelming being wedged between bars at the jumping end of Orianeburger Strasse in Mitte.The hotel itself actually comprises the first floor of an old soviet(I think) era building with bars underneath and private dwellings on the floors above.The entrance and stairway was a bit shabby but this is a common stairway giving access to all properties in the bulding.Once into the hotel itself we found it small and functional but perfectly cleanThe owner Georg speaks very good English and was very helpful.The rooms were small but again very clean.My room was at the front of the building which can be noisy with the windows open due to nightlife ouside.Our friends had a room at the rear of the hotel which was quieter.There is an excellent,large German style buffet breakfast included in the price which we used to fuel ourselves for the day.Hotel staff are very laid back and there is an honesty fridge in the hallway stocked with beer,wine and soft drinks.You tot up what you drink and pay on checking out.The location is perfect being right next to Oranienburger Tor U-Bahn Station and set amongst bars,restaurants and cafes too numerous to mention.Altogether a very good option for a budget break in a great location.

Super location in the old/new Jewish quarter in Mitte (never mind the ladies of the night on the street outside; they're harmless). Very clean and large-ish rooms, good service, big breakfasts and pleasant staff (the hotel manager gripes a lot but is also harmless). Great value for the money!