I stayed here with my partner when we visited Matsuyama in January 2011. It is just outside the Okaido covered shopping arcade, and about 12 minutes walk from the Matsuyama castle ropeway.
We got a double non smoking room, which was pretty cramped but not as small as the the one in the Urbain Hiroshima. The bathroom was clean, and had the usual features you would expect in a Japanese business hotel (washlet toilet, sink, bath/shower combo, shower cream shampoo, razor etc).
If you are a non smoker, make sure you request a non smoking room as most of the hotel seems to contain smoking rooms.
We didn't have the 700 Yen breakfast as we could get a better value breakfast at one of the cafes in the Ocaido arcade. There is also a convenience store downstairs, right by the reception where you can get drinks, food and snacks.
There are communal baths upstairs in the hotel (separate ones for men and women) but we didn't try them out.
There are also free internet terminals in reception which were very useful.
Overall I would recommend this place if you are looking for a cheap and well located place to stay in Matsuyama. For 1 or 2 nights, this place is fine.

Really tiny rooms. I have been told this is pretty normal for a Japanese hotel room. My husband and I ended up having to get 2 rooms, one for each of us!! We didn't try out the onsen. We stayed in more Western-type hotels in Kyoto and Kobe and were very happy with those accommodations. One of the desk clerks was rude to my daughter who speaks fluent Japanese.

I visited Matsuyama with my wife and a female Japanese friend, so we required double and single rooms. We weren't not too demanding, as we only had one night in Matsuyama so we only needed somewhere to rest our heads after sightseeing around town.

The single room our friend was given was perhaps the smallest room we'd ever seen - barely a step-up from a capsule. Literally, the room had a single bed with a tiny amount of space on the floor for luggage, with the toilet and shower opening directly off the room (ie. there wasn't a separate 'bathroom' as such). There was no window - it was as if they'd converted a broom cupboard into a single room. We all had a laugh when we saw it, and were thankful that we hadn't committed to more than one night.

Our double was barely that much larger, and was quite a squeeze with 2 people and all our luggage. At least our bathroom was separate.

The room sizes weren't a problem in themselves, but as the rooms were about the same price or more as a Toyoko Inn, without breakfast and TV (300yen extra for TV), we thought it was a bit of a rip. t was also quite noisy late at night. On the plus side, the hotel had onsens for men and women, and the location was quite good, being in the heart of the entertainment district and walking distance to the castle (but not Dogo Onsen, which was a brief tram ride away). It was also reasonably clean.

Overall, this was just an average business hotel with miniscule rooms and offering poor value. Look elsewhere.

As for Matsuyama, we really enjoyed our stay there - the castle and its views were spectacular, while Dogo Onsen was a great experience. We heartily recommend the city.