I spent 5 nights in one of the Motel rooms here with my girlfriend in August 2011 because it was the nicest-looking hotel we could find in our price range. The room was very nice with air con and ceiling fan, ensuite shower, fridge, kettle toaster but no crockery or cutlery. Everything seemed very clean and comfortable. The pool was nice, too; not the biggest, but it did have sun loungers and communal barbeques surrounding it. The free in-house movies were quite decent too. There is a computer with internet in reception where you can pay $2 for half an hour, but be warned reception closes mid-evening; after that you can pay for the wireless hotspot but it seems quite expensive and we didn't get signal in our room.
Obviously the main problem with this hotel is the location. Buses do stop outside the door but only come every 20-30mins so I'd recommend checking the timetable in advance to avoid missing one. Most day trips (reef, Karunda, etc.) will pick you up from reception, but because you're so far out you'll normally be the first in a long line of pickups, meaning early starts and a long (though relatively interesting) bus journey.
The staff here are phenomenally helpful and friendly. Keryn, one of the owners, took a real interest in our time in Cairns and helped us to make all of our plans - giving us maps of the city and beyond, recommending a great reef company, organising our trip to Karunda and sorting out a car and route for our day exploring the Atherton Tablelands.
As long as you don't mind being dependant on public transport/shuttles/hire cars, I would definitely recommend this hotel for a comfortable low-cost base in Cairns.
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC