I had last minute meeting in Gibraltar and this was the only hotel I could find at short notice. I stayed there for 1 night. To be fair, it does not advertise itself as The Ritz, so I shouldn't have expected much. The room was clean enough, but stank of smoke. There was no hot water, but the AC worked and wasn't noisy. The bed and mattress were old, but not uncomfortable. I got the feeling that the bed linen hadn't been washed properly, but that could have been down to the fact that everything smelt of smoke.
The location of the hotel is good. It is near the main square of La Linea (with lots of restaurants and bars) and only a 10-15 min walk to Gibraltar border.
If you're a backpacker, you'll be satisfied with your choice of hotel. If you're on a business trip, don't leave it until the last minute and book something better!