Not as bad as I had read.
I needed a cheap Hotel in NYC so that I could take my 2 sons to the city over Easter, Hotel Pennsylvania fitted the bill. When I read the reviews on here I started to get nervous however on the whole we had a good experience. When we arrived there was a short queue to check in and we were checked in within 15 minutes. Staff at the desk were very good. Our room was not huge but it suited our needs, it was clean and there were plenty of towels in the bathroom. The room was cleaned every day and the bedding changed. Yes there were some things in the room that were dated, the TV and TV cabinet for example and yes the whole of the hotel apart from the entrance and lobby looked dated and a little shabby, but I would stay there again. Even though I can see why some people would compare it to the Hotel in the Shining, it has some long corridors.
The hotels location is fantastic across the road from Madison Square Garden and Penn Station it is also close to The Empire State Building and Times Square. You really can't beat the location as a base to explore the City.