We like the location as it is not too far to walk to the famous Seongsan Ilchulbong (Sunrise peak) and also took us to walk about 15-20 mins to the ferry port to U-do island. We took the 'ondol' room to sleep on the floor, but in winter, it takes us some times for the floor to warm up.
The only downside to us is that there is no elevator, so if you have a lots of luggage or heavy luggage, you may find some trouble to carry to 3rd floor.