We booked a three bed room here and were happy with the outcome. The hotel is closer to the airport then it is to downtown but it does have the tram right outside. So if your intentions are purely downtown sightseeing and coming back for the evening it is very convenient, however if you are more inclined to be taking part in the nightlife you may want a place closer as the trams are not running all night and it is still a 20 minute ride. The room was very impressive and clean. It was large and had a good setup. The staff were very cool and seemed to work some long hours and maintained good attitudes. They have an excellent breakfast for free in the morning which we took part in after a long night. They also didn't seem to have any set check out time as we were able to sleep in and stroll out when we saw fit which was a tremendous plus. They do have wifi in the lobby so you can take care of business and there is also a huge Tesco Supermarket down the street to take care of anything you need. The neighborhood was nice and safe so no worries there. It was definitely a good place to stay but not as close to the action as we required. 

A very small, tired hotel that is not near stores or restaurants. Very old beds and furniture with thin towels and sheets. Bathroom light and sink didn't work. No shower curtain. Staff was helpful, but didn't have much to work with. Although rate was lower, it wasn't low enough for the quality.

We stayed in the family room on the top floor for 3 days. It was a really good deal because of the really cheap price, the free parking (most of the hotels in the city do not have parkings) and the tramway in front of the hotel. It was really easy to go into town and come back. The breakfast is ok, and the room was clean. The owners are charming and very helpful. The only downside is that sometimes the smell of fried food invades the upper floors.

My Boyfriend and I stayed in the U Hvezdy Hotel while on a short trip to Prague April 2007.
I booked the Hotel through travelsupermarket.com and the two of us stayed for 3 nights for just £50 each!
The Hotel was clean quiet, breakfast was a little disappointing it comprised roughly of cold meats cheeses, Jams, bread, meat pastes, cereals and UHT milk, but to be quite honest no breakfast I have had abroad has ever blown me away. There was nothing wrong with the breakfast just quite basic, but then Prague is an Ex communist country which I think maybe the reason for some of the strange food and drink on offer, E.g. pure orange juice diluted.
The room we were given was of a large size with a clean ensuite toilet and shower facility.
Prague is quite cold at night so we were pleased to find extra Linen's in the wardrobe, the room also had a TV offering many channels.
The staff were friendly but could not speak English apart from one lady who worked mornings & could speak just a little.
The journey from the hotel to the main town was about 15 - 20 minutes on the tram, the stop is situated just outside the Hotel.
Personally I enjoyed the tram journey as I felt it gave me a better idea and view of the country I saw things that most tourists wouldn't like Suburbs, Czech shops etc.
Across from our hotel and just up the Rd was a nice little restaurant/bar, we never ate there but went in for a drink a couple of times.
On the first night we were there we went to the restaurant and met two lovely Czech men who asked us if we would like join them and go on to another bar, we went along and ended up in this surreal bar with a mini casino, bowling alley, bar & the largest duke box selection you have ever heard, none of the staff there spoke English or the customers for that matter.
We had 3 drinks each 12 songs on the duke box and 20 cigarettes all this was put on to the bill even if you ask for change for the duke box they just take money out of the till give it you then add what you have been given to the bill, when I converted the total cost to GBP I couldn't believe it, we had spent £11.68 all night!!
I am not saying that every where is that cheap in the main town we paid between $1.50 - £3.00 a drink and the way you pay etc isn't like the bar in the suburbs, but if you are on a budget, go where the locals go as you will save a fortune!

Overall I loved Prague and would go back to the same Hotel again and again.
Beware of taxi drivers though, agree a price before you get in!!