Charge a bit more and use the money to fix it up!
We stayed here for 6 nights from September 15th to the 21st.
The good: The hotel's location is unbeatable. It's so close to shopping, restaurants and the Metro. The weather was gorgeous while we were visiting and so we walked to the National Mall, memorials, Smithsonian and Capitol Hill. Everything takes under an hour to walk to. The breakfast was fine, not good but not terrible. It does get really busy between 8am and 9:30am. If you're ok with cereal, yogurt, juice, tea and coffee, it's good enough. The clientele is interesting because of its proximity to all the embassies. When we were there, it was an interesting mix of exiles from third world countries and foreign journalists. We overheard some fun wheelings and dealings in the lobby that sounded like they were straight out a political thriller.
The bad: The hotel is tired. Really tired. The staff are just doing the bare minimum to cover what needs to be done. Our air conditioning broke twice and they sent someone up right away to fix it, but the fact it broke in the first place was an issue. The price is amazing, but if they charged slightly more, they could use the money to do some renovating. The rooms are small and our hotel room didn't have a tub. 
The ugly: We booked on Priceline for myself, my husband and our two toddlers and I have always called in advance to ask for a room with two double beds or one King bed for us to share. Never an issue (most hotels ONLY have these kinds of rooms.) Here I was told that I would be getting a room with a Queen bed and if I wanted more space, I should have booked two rooms. They could upgrade us to a bigger room for an additional $150 a night. A rollaway would cost an additional $25 a day per child. Not sure where it (or they) would have gone since there was barely space for the Queen bed. One of our sons ended up sleeping in a small portable toddler bed we bought and the other slept between us. Not awesome service at all, considering how long we were staying there.