Good hotel with minor issues
Spent 14 days at this hotel together with my wife and three children. Location was good with nearness to A, C, and E subway and Penn station. Hotel employees were smiling, polite and helpful at all times holding doors and elevators. 
We had breakfast at the hotel one morning and it was fine. I prefer the hotel breakfast buffet compared to Tick Tock diner on corner of 34 street and 8th or Skylight diner on corner of 34 street and 9th. If you are into a cheap breakfast nearby, there is a really good bagle joint on 35th street between 7th and 8th avenue. We were regular customers in the nearby Starbucks on the corner of 35th and 8th.
We were in New York during the heatwave in mid July, 2012 so we were always in light summer clothes. With this clothing the temperature in the lobby was very much on the cool side, so we seldom felt like staying there for a drink, after returning from our daily tour of the city. 
The small fitness room beside the lobby has a cross trainer, multi machine, treadmill and an advanced weight. Unfortunately there is insufficient ventilation in the room, so it was a humid and warm experience to come down there. Dispite the heat wave I chose to take a run in Central Park instead (10 minute run to get to the park).
We had a family room on second floor. It had a good size with two comfortable double beds, a bunk bed, sofa and a table with four chairs, so there was plenty of room for my family. There were two flat screen TV's and lots of electrical outlets and an alarm clock with iPhone charger. There was wireless internet connection, and it worked fine in our room. The room had plenty of drawer space and an ample sized wardrobe. In auto mode the airconditions were either on or off, and they were rather noisy.
The bathroom was modern with a nice design and after figuring out how to control the shower, it worked fine with lots of warm water and water pressure. The door handle was however loose in the shower cabinet door and the toilet roll holder was also loose - a bit of regular tightening could solve that.
Of the 14 days we were there, the hotel staff forgot to make up our room once, even though we had hung the "make up our room" sign out, and returned late in the day. The hotel staff reacted promptly by sending a maid to the room. One day they overlooked, that we were close to running out of toilet paper, so I had to request a new role myself. One day we could see they had been there, since they had made up our bunk beds, but they had forgotten to make up our two master beds.
Cleaning was fine, but there was quite a bit of dust in the lamps hanging above the beds. Did not look like they had ever been hoovered inside.
We had a small fridge in the room inside a cupboard, which was great, so we could keep drinks and snacks cool. Unfortunately there was no ventilation in the cupboard, so it could only stay cool if we left the outside cupboard door open. 
Before we arrived at the hotel, I sent a mail asking whether they had or could provide lactose free milk, since my son has lactose intolerance. A response such as "Sorry sir, we only provide regular milk for breakfast, but you are welcome to bring your own milk" would be fine, but instead I heard nothing, which was unsatisfying.
All in all we enjoyed our stay in the hotel and would not hesitate to recommend it to other families. Great with a New York hotel where all my family can fit into one room. I mentioned the issues to the hotel concierge when leaving, and she made a note of them which was good. I hope they handle they get their processes and check lists in place, so other guests can avoid these minor problems.