The location is superb, and -- for Venice -- the price is reasonable. The English-speaking staff were very helpful from check-in to check-out, and the room was clean and comfortable, although quite cramped. (The in-room fridge was also pretty devoid of anything worth eating or drinking.)
As others have noted, it is also extremely difficult to find. Neither the address on the website nor a google-map of the location could make up for the fact that neither the street it is on nor the nearest cross-street have the same names on their street signs as what appear on the maps. If you have Rick Steves' guide, his directions are accurate. Once having arrived, you should also be prepared to climb two long flights of stairs and navigate a total of three locked doors.
Small complaints aside, I would still recommend this place and return to it if I were to return to Venice.

Bottomline: Great location, good value

This hotel was a five-minute walk from Saint Mark's Square. It was in the center of exactly where you want to be on a trip to Venice. When we stayed in March it was about $120 a night, which was a great value for that location. The room was small and simple, but comfortable enough -- about what you'd expect for the price. But it was clean and felt safe, which are my main two requirements when staying at a budget hotel. It was quiet and had a private bathroom.

I would absolutely recommend this hotel for someone who wants to be near the major sites in Venice without paying too much. It was wonderful to be able to wander -- and dance through -- St. Mark's Square late at night, knowing we were only a couple minutes walk from our beds. I would definitely stay here again.

We stayed here 2 nights at the beginning of our 2 weeks in Italy on a friend recommendation. The hotel was in a GREAT location for exploring Venice & a good value for the proximity to St. Marks Square. Most services are run from the hotel next door, Hotel Castello, so you check in, drop your key and have breakfast there.

The rooms were nice although ours had a tiny little set of stairs to get up to the bedroom. It was not possible to walk down the stairs forwards - you had to go backwards down like on a ladder. This didn't bother us and I don't think all the rooms are configured this way.

The breakfast was good and the staff was friendly. The location can't be beat for exploring Venice.

My wife and I found this through Rick Steve's and checked it out through TripAdvisor. The Locanda is actually attached to another hotel that is owned by the same person. It has only five rooms and is located right next to San Marco Square and just a few minutes walk from the San Zaccaria vaporetta stop. The hotel does not have an elevator but an employee was dispatched to help us with our luggage. We stayed on the first floor. The hotel is nestled down a small alley that is not part of the tourist path. Thus it was very quiet. We had free WiFi, a safe and refrigerator. The TV was small and there were few English speaking stations. That just made us sight see more. The breakfast was served in the larger hotel and was adequate but not super great. The staff was wonderfula and gave great eating recommendations that are important in Venice where restaurant ripoffs abound. We booked directly with the hotel and paid in cash to receive a 10% discount. We never heard another person in the hotel during our three days there.