Hat Yai is a great place and considering the troubles it underwent (the bombings) its tough to write a negative review about a hotel here. However, it has many hotels (many Malaysian and Singaporeans vacation here) so choose wisely. Here is my take:

Plus:
1. You can't beat the location of this hotel. It is in the middle of everything (right next to the much higher priced Novotel and Lee Garden Plaza hotel). Next to it are 2 major shopping centers (Central Festival, Odean), a lively street market). This is the happening street in Hat Yai.
2. Price: At 690 Baht, it beat paying 1500baht at nearby hotels.

Negative:
1. No hot water: Stayed 2 days, showered cold.
2. Could be cleaner

My suggestion is to stay at the Pink Lady Hotel just 1 minute away. Its 600 baht flat everyday. The thing about the Pink Lady (if you see from their website) is that it also caters to other types of travels. You do not have to partake the activities these travelers choose. I simply refused when offered and enjoyed paying 600 Baht for a clean room with actual hot water. It has 2 entrances (near main road and in the back) so if you are easily embarrassed you can use the back entrance. Since I was not partaking in any othe offered activities, I saw no reason to hold my head in shame when entering this hotel

We were a walk up, after a VIP bus trip from Phuket. We were transitting to Penang. Room rate was OK, but Hotel defineatly had a worn look, smelt musty, and had groups of people sitting in the corridors, as their rooms appeared to be overcrowded. No Hot Water Jug. When I had a walk in the morning, several other hotels were close, and I was dissappointed I hadn't seen the Novatel the night before. BFast included was fine, but was at a Cafe that looked like the Wellington Railway Station Cafe of the 60's.