My husband and I stayed here for 2 nights in early September as arranged by our tour company, and we had a decent experience at this hotel. The hotel itself is fairly dated, and the reception staff provides OK service - they were helpful when we asked them for help, but I wouldn't say they were particularly friendly.
When we first checked in, we were given a room where the toilet didn't work, and there were ants crawling up and down the wall by the window. Upon bringing this to the front desk's attention, they apologized and promptly helped us move into a different room. The new room was good and fairly clean, and the bathroom, while dated with slight mildew/rust on the tiles and fixtures, was also clean. Hot water was not consistent; we only had hot water for showering at night, despite the sign in the room noting that hot water was available from 4pm to 9am. There was a window screen to keep the bugs out, which wasn't a necessity during the time when we visited but probably very helpful otherwise.
The two redeeming things about the hotel is its location (by Lake Tana) and the restaurant. It was quite nice to be able to sit by the lake while dining, and there were lots of plants, flowers and birds that made sitting outside enjoyable. I will say that the hotel itself is a bit further away from the main part of town, and you will have to hitch a ride back on a bajaj (tuk tuk) after dark, as the side road that leads to the hotel has no street lights. (A ride back will cost about 30-40 birr, depending on where you are coming from.) In terms of the restaurant, we had lunch there on the first day, and the food was quite delicious. The breakfast there was also good, and I have to say the waitstaff were very friendly.
All in all, I would say this is an acceptable hotel for Bahir Dar. (We checked out Kuriftu and it is very nice but also very, very expensive in comparison, so it's hard to say that it is definitely better than Tana.)
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC