My husband and stayed in the Hotel Prati with a group of friends in July 2010. It's an excellent location for walking to the Vatican as well as to the major sights in Rome. The price is very good. Our room was small but very clean and we slept well. Our friends had air conditioning trouble and a leaking refrigerator, but the both cases the staff was quick to move them to another room.

This hotel had very friendly staff and a nice simple breakfast downstairs in the morning. This place was cheap, and my room was very small, but for the price it is a steal. The rooms were extremely clean.
The location is one of the best things about this hotel, and I walked to most other parts of the city from here. The sight seeing buses stop nearby though, and a subway stop is just down the street, making it easy to get here from the airport (Leonardo express to subway).
I want to go back !!!!!!!!

This hotel is great bang for your buck.
In a nice area, simple rooms , beds not plush yet comfortable (think, staying in the bed at nonna's house) plus nice bed-ware.
I think that the most important thing when you are going budget on a hotel is cleanliness and the rooms here are so clean you could eat off the floor!
great wireless internet, pastries for breakfast & Fabio on the desk is also very helpful.
I would stay again.
Also if you decide to catch the train from FCO airport to the Termini station and then on to your destination instead of a taxi, beware that the metro's have alot of stairs..if there is a bus heading your way from The Termini then i would recommend that, the buses are frequent and easy to travel on.

This small 2** hotel is located within 10 min of walking distance to St.Peter's Basilica/Vatican City. Close to Ottaviani Metro station, but also easy to walk to all the big attractions; Castel St.Angelo, Piazza Navona, Campo dei Fiori, Trastevere etc.
Breakfast was included, and was as promised in our booking, just a croissant, coffee/the and juice. But it was sufficient to start the day on.
I would definately stay here again next time I go to Rome - which I will!