We stayed at the City Hotel for 4 nights over Christmas 2011.
It's right beside Rembrandt Square, close to lots of restaurants, shops and a variety of 'coffee shops' and a short walk to Dam Square.
We loved this hotel and have just booked to return in April.
It's basic but clean and the staff were always friendly and helpful. I saw no evidence of any of the negative comments made in earlier reviews so don't let them concern you.
If you're looking for something cheap and cheerful, with smoking allowed, close to all possible entertainment then I would highly recommend this hotel.
