Yes, the location is good, or very good, as other reviwer said. But that's all. The price of 170 euro is DEFINITELY not good value for money. And if you get, as I did, despite assurance it wouldn't be, a room in the "dependance" then you don't even have the view. There are no services at all (swimin pool, business center, spa, gym, nothing!) and internet wireless is free, but just in the small lobby). The price included breakfast, which was just average, and with limmited choice. In short: you can find much better value for your euros (or dollars).

We stayed in this hotel for two nights.
We arrived around noon and were greeted by a distant non-portuguese woman who was not genuinely nice.
We read good reviews about this hotel on both trip advisor and booking.com and were looking forward to staying here for a reasonable price of only €100.
We were greeted in a discreet, cold manner. We were shown to our room, and while the young lady folded the comforter to be placed in the 'closet' (Bizarre behaviour) we were explained a few things about the hotel:
1- the hotel is open 24 hours a day, we could come and go as we pleased
2- we could use the phone in the room, but phone calls are very expensive and we wouldn't want to be surprised with high charges upon check out.
3- Wifi is available only in the reception area (which is fine with me) but if we wanted to use the internet in the room via a cable it would cost €5 per day
4- breakfast costs €12.90 per person if we wanted to have it and is served between 8 and 10
5- if we leave the room we should leave the key at the reception

It took her several minutes per point to explain all the details and explain WHY their policy was like that.

I found the art to be quite gloomy and the rooms overpriced. We stayed at the Vincci Baixa last week and found it more pleasant, nicer rooms, and better service. The location of the solar dos mouros is indeed enviable though. try the olissippo castello it looks a lot nicer. We enjoyed a conversation with the only portuguese staff member of the hotel one evening who offered us a glass of port wine.

I felt as though I were an intruder and not a guest.

This is a small, tall hotel in a great, old part of town. It has about 13 rooms. We stayed in two of them, Chagas (1 flight up from street level, facing south ish) and Castello (up 7 flights of stairs, no lift, facing north ish, towards the castle).
Both rooms were large, individually decorated suites (large enough to have a table and chairs). Only one room in the building has a balcony, and that is on the roof.
We liked the area, high up above the main scrum of the town centre. Two trams (25 and 11) get you to within 100m or so, then you have to climb the rest of the way yourself. The area has a few good bars and restaurants but is generally quiet. The atmosphere of the area and of the hotel itself was in harmony of the general feel of the city itself (which is like Barcelona, but more laid back, more run down and less knowing).
I was less keen on the smaller Castello room because there was no bathroom door.
The hotel is small. Often the door is locked and one has to ring to get in. We normally like business class anonymity, but the ultra friendly staff, free drinks and quirky feel of the place won us over.
Recommended if you want somewhere that reflects the Portuguese capital.

Wow, my review is a little late. Bump into this hotel on website so thought will add some photos to it. It is a small hotel full of charm and character! Staff offered very friendly service and good advice to side trips. Breakfast was great with many choices. Porto and fruit plate were ready for me on my day of arrival. On my last day, staff offered me a bottle of Porto again! The hotel was just steps below Castelo de Sao Jorge. The view was fantastic. I took several night and sunset pictures from my room. The whole experience was just wonderful!