We read about this hotel in the Lonely Planet and it definitely did not let us down. It was a fantastic, relaxing escpate from the hot streets of Yazd and was well served by its very friendly and helpful staff (especially the hotel manager who was wonderful). The rooms themselves are basic - a double cost us about US$40/night so don't think of this as a luxury hotel - and the bathrooms leave a lot to be desired but the hotel has a great covered central courtyard area with a water fountain which made up for the shortcomings of the rooms. The coutryard was a great area to relax with tea and a qalyan and a book and forget about the troubles of the world.
They also serve food in the courtyard and it is worth coming here for a meal even if you aren't staying in the hotel.