We went to Prague for the NYE (2011/2012) and spent in the Hotel Extol Inn 5 nights. The hotel was nice, rooms and bathroom were clean (however somehow the towels were not changed even once) and the staff VERY nice and English speaking. Breakfast was various and delicious (especially the goulash). The free Wi-Fi in the rooms was not working well but I’m pretty sure down in the reception hall it shall be fine. The hotel is not walking distance from the center but only 15 minutes by means. In general we are very happy that we have chosen this hotel and we truly recommend it.

For a budget inn, the service was truly exceptional. The rooms were spotless, and all worked well. The morning breakfast was perfect -- fresh and carefully prepared and presented. And most of all the staff were a constant help -- with everything from helping track down lost luggage (curse you Lufthansa) to advising good places where a budget (read: cheap) traveler could get clothing locally, or transit to various places. They advised on cab fares, and which Opera companies were the best (there are many Opera companies in Prague). They were well placed -- just a short walk from the train, with a local bus going right by, in a friendly neighborhood.

This Extol Inn seems to straddle the line between hotel and hostel, with some of the best elements of both. (When booking, be sure to check out hostel websites as well as hotel websites, we found the rates to be significantly different.)

Our family of four stayed in two private rooms, each with a private bathroom/shower. The decor was simple and "Ikea-chic", but clean and fully functional. The beds were very comfortable. The wireless internet during our stay was some of the fastest I have used in a hotel anywhere.

Breakfast was awesome and a great bonus. It had a huge range of items, both hot and cold, and was enough to fuel the emptiest of people. Recommended.

We only used the restaurant once, the service was prompt and friendly and the food tasty.

A 'hats-off' to the front-desk staff, who were always friendly, professional and had answers to all kinds of obscure questions. Thanks, you made the stay much more pleasant.

As others have noticed, the hotel is not directly in downtown. However, there is a subway station about 5-10 minutes walk from the hotel, as well as trams that take around 15 minutes to get to downtown. Prague has an excellent public transport network - remember to get tickets first.

This Budget hotel (when you choice a budget room with share bathroom) is a great option when traveling on a shoestring. It is clean, more private then a hostel (you get a nice, clean and comfy private bedroom, single bed, no tv, but a table and chair, and the bathroom were only shared between 3 single rooms, and saw no one else in the bathroom for the 3 nights i've spend there).
The breakfest is included, there is plenty of food to choice from, and the staff is very nice.
There is also a restaurant on site, reasonably price, a good option if you are leaving town later than your friend and do not want to hang around the city center by your own all alone (sometimes, a girl need to be cautious, although, never felt unsafe in that area).

I quite like the fact that is was a bit away from the city center, but so close in the same time. There is a tram that get you to the ciy center in about 15 mins. One of the main train station is close-by (the other one is a short subway-tram ride). You are away from the touristy crowded, in a area full of locals that are nice and helpful (will try to help us and show you were to go), and it way cheaper than staying downtown. And that way, you can see another side of Prague, the big soviet blocs, its another reality.

I cannot comment on the not-budget room, but it is a good choice, excellent value. I would go back if going back to Prague!

Enjoy your trip!