I stayed for 3 nights at Hotel Sicilia and was pleased with its proximity to the historic town and also the train station. The staff were welcoming, provided us with maps of Palermo and recommended sights/places to eat. I would recommend for budget based travellers looking for somewhere safe and clean for a decent price.

We stayed at the Hotel Sicilia for 2 nights and recommend it. Very helpful men at the desk. One even took the time to preview for us, using Google Earth at ground level, through the maze of streets to pick up our rental car. Nicer hotel than expected for the very low rate. Our room was fine, with the exception of the old yellow couch/futon which really must go. Good location. For a budget hotel, this is a find.

Disgusting hotel: old building, old rooms, old furniture, old thin mattress (on the day after, we had pain to our back), noise during the night because a group arrived...
There was smell of sewer from the bathroom, really disgusting.
From the ceiling, there were stains of humidity and mould!
The only one positive thing is the location, which is central and you can easily reach the different parts of Palermo.
Don't go there, this is our suggestion.

We have stayed in this hotel for two nights only, but suffered terribly for another a few days. In our room there were hordes of bedbugs. They were hidden in wall cracks. Despite of a good location and acceptable breakfast this hotel is not a wise choice. Wi-fi is available in reception area only.