Location is exceptional...the room is abominable
While I stayed at a nearby hotel, friends stayed here, so I was in this hotel a lot. Location cannot be beat....across from Penn Station/Madison Square Garden, a block from Heral Square, quick walk to Times Square. Access to the subways is key, great central spot to get anywhere in the city. 
Lobby is deceptively grand. High ceilings, front desk impressive, and lots of people milling about. Had a room on the ninth floor. Even the elevators are scary! The floors are dark, dank smelling and badly needs repairs. Looks very worn and old. The room itself is a decent size, but reminds me of a bad dorm room. Air/heat iffy, depending on its mood. No visible signs of bed bugs or rats, but honestly, I would think they were there. Bathrooms ancient, but adequate.
Overall, if you just need a great place to crash, this is a great bargain. If you have higher expectations of your stay, then look elsewhere. Plenty of smaller boutique hotels in the immediate vicinity that feels more safe and clean.