Great Location
We stayed at this hotel this past June and all went well. When we first arrived, the lady at the front desk let us know that our room had not been cleaned yet so we were bumped up to a room with a patio (which was awesome). 
The rooms are small but all you need to do is sleep and shower, right? Us and our dog loved the patio and hanging out there. If you leave the door open during the night (we didn't need the AC on) you can hear the street noise and those partying but it really isn't that bad. 
You are right in the middle of everything. There is an awesome fish taco place right across the street- go upstairs to the bar and you will have an amazing view of the ocean. It is cash ONLY and 21+. The hotel is right on the beach and the dog beach is a really short walk.
There are "bums" on the streets but they aren't a bother and keep to themselves. They are really just hippies who never left the 60's which is OK because wouldn't it be nice if we could all live that way :)
Overall, great hotel and price for the location especially if you have a furry friend. Rooms are small but who cares- GO OUTSIDE AND ENJOY OB.