Fantastic location, clean and comfortable. Great find!
We've just returned from a 4 day stay at the Washington Square Hotel and cannot sing its praises enough. The location is simply excellent. As first-timers in NYC it was great to stay in an area as laid back and lovely as Greenwich/West Village. You are a stone's throw away from endless bars, restaurants and of course the beautiful Washington Square park but still within walking distance or a cab/subway ride to the major sights. We actually walked the entire length of 5th Avenue from just outside the hotel, which was a great way to see New York by foot. 
In terms of facilities, the room price included a continental breakfast which consisted of fruit, bagels, croissants, biscuits and muffins, plus yoghurt and cereal. We only ate the breakfast twice as we were spoiled by numerous diners, brunch venues, but it's adequate and will set you up for the day. Our room was admittedly tiny, but we spent very little time in there. It was immaculate in condition and very comfortable. A nice touch is a coffee machine and crisp white bathrobes. We didn't use the hotel bar but it looked lovely and the hotel is equipped with a gym (if you have the inclination, but I'd recommend pounding the streets to get your exercise). 
The staff were also incredibly attentive and helpful. Always polite, the door staff were particularly friendly, offering shopping, eating and transport advice on our way out every day. 
Things to do in the area that I'd recommend: 
Walk along University Pl. (turn left out of the hotel and walk along Waverly Pl. till you see it) - loads of nice shops and cafes. We had brunch at Jacks outside in the sunshine, great menu and good service. 
Go to Bleecker St. If you like live music you'll love it there, there's tons of live music bars, most with singers/bands/open mic nights on nightly, most free entry. 
Eat at the Good Stuff Diner: a short walk along 6th Avenue. Simply the best breakfast I have ever eaten and a must for those wanting the quintessential NYC brunch experience. I'm still disappointed I only got to go there once. 
I can't think of any negatives with this hotel, perhaps except the size of the rooms, but that's New York. All in all, great value for money, fantastic location and brilliant staff. I will be recommending the Washington Sqare to everyone I know who's planning a trip to New York, and I hope to go back there soon myself!