We stayed here for three nights.. and used it as a stopover for our onward trips to the Galapagos and the rain forest. It was recommended to us by Denisse from Surtrek. Well, we weren't disappointed. The location is excellent.. very close to restaurants, bars and the handicraft market. Marcello (the manager) was great. On the last day, given that we had time only from 12pm onwards, he arranged for a cab to show us around Quito. Obviously, the guided tour (for a day) would be have been much better, but for 1/4th the cost of the guided tour, we could see quite a bit of quito in 6 hours, Really good value for money. The breakfast is good and the security is tight. Overall, we quite enjoyed staying here.

We stayed here for a week - choosing the hotel based on price and included breakfast after considering several larger chain hotels. Most rooms have multiple beds - since the hotel us used by many groups on their stopover to the Galapagos or other parts of Ecuador. We seemed to be the only rooms that were there for a full week.
Beds were comfortable, hot water usually good unless a large group had just arrived and all took showers at same time.
Breakfast was good with coffee, juice, fruit, cereal, yoghurt, eggs, etc every morning. Even the mornings that we left early for tours - they gave use coffee and rolls which was greatly appreciated.
Location is very good - on main street in Mariscal, just a few blocks from restaurants, loads of hostels and some shops.
Bus to old city is only 3 blocks away - (25 cents each way). Taxis were easy to get and cheap - just make sure to ask first how much it will be. Manager and front desk staff were very helpful with tour information and suggestions for what to do. Excellent 24 hour security with guard at the door. Maid service was fine - don't' expect 5-star service from this friendly small hotel, but you'll probably gladly exchange this for the great price. One issue may be street noise, but this is an issue at almost any hotel in Mariscal - so bring some earplugs if this is an issue... I got used to it in a few minutes and slept fine.

To be clear, I stayed at Hotel Fuente de Piedra 1 (not 2). I read some good reviews and the price was right, so I decided to check it out. I was not disappointed! The hotel is small and tastefully decorated. It has a beautiful courtyard with a soothing fountain that is a wonderful backdrop to enjoy free breakfast. The beds and pillows were comfy, though the rooms are not exactly soundproof, so bring your earplugs. The best part was the staff: Veronica and Wilson rocked! They were both incredibly pleasant and helpful with arranging transportation, suggesting restaurants, organizing take-out meals, providing much desired tea to a weary traveler and helping with any other questions that I had. It is rare to find such helpful hotel staff and these two individuals were the best I've ever come across! They made me feel very comfortable and at home. Much appreciated! I highly recommend this hotel!

Other reviews have said a lot - but just wanted to add my positive comments. Clean, charming, great location in Mariscal. Lots of restaurants within walking distance, so if you're just in Quito for a bit en route to mountains (otovalo, etc) or GPS - a great spot to stop.