they are tiny rooms, but VERY very clean and nice. everything was wooden, which me and my boyfriend liked. it was all varnished and seemed like my OCD grandmother's house, so very clean as a result. the bathroom was also very clean; the shower heated up immediately and had a nice smooth, wide stream (these kinds of things matter to me >.>) but my favorite part about this hotel was the beds. there were 2 twins, but naturally i pulled them out and shoved them together for us. the pillows are double length, and made fully of foam, no lumps or anything. the beds also seemed to be foamy, which i at first mistook for excess firmness, my overly picky boyfriend laid on it and went "ooooaahhhh." we slept about 11 hours that night, it was hard getting up. very cozy hotel.

We booked a basic double through booking.com It was pretty basic - tiny room, tiny bathroom, small window facing onto a small internal courtyard with windows of other rooms facing us. But you don't come to Toledo to sit in your room. There was actually quite a wide choice available for the 5 euro breakfast (by spanish standards).
The hotel has rooms arranged around two courtyards. The larger, older one seems to have rooms opening off the wooden internal balcony - I guess these are the more expensive ones, and must face out onto the surrounding streets and alleys. A second courtyard, where we were, has rooms with windows opening directly onto the courtyard, so no street noise, but less attractive. And the corridor around these rooms is tiled with pretty mudejar style tiles which give a tremendous echo when anyone walks by.
The best part of this hotel is the small roof terrace as described by other contributors. Go up there at sunset, sunrise or at night.

Cute hotel in a nice location on a charming cobblestone street not far from the cathedral. Our room (#115) was a superior for 65 euros and was surprisingly large. Cool wooden shutters completely block out light at night. The bath was smallish but pretty, and more toiletries were offered than at lots of places. The pillows were extremely firm, very uncomfortable, long, thin body pillows. It seems that if you ask for a double you will get two twin beds, made up separately and pushed together. The breakfast was pretty lame and not included. About 5 euros gets you coffee (no refills); freshly squeezed orange juice; a choice of fruit or a couple of packaged cookies; and a piece of toast with jamon and cheese. The heavyset clerk during the day clearly has better things to do than deal with guests. The guy at night was helpful.

Excellent location, not far from the Cathedral in the middle of the walled city. Only downside is getting there by car - the narrow streets are a bit scary to drive through, but the hotel did have parking. Small rooms, but to be expected from a medieval building. Nice and clean. Staff were helpful.