We stayed here in Dec 2006 and enjoyed it very much. The rooms are small but comfortable and the terrace restaurant served a traditional Turkish breakfast every morning which was included with the room. The front desk staff is more than happy to let you use their computer if you want to use the internet - just ask and they will go have a tea and a smoke while you use it. It is very close to the Arasta Bazaar and the Blue Mosque. There are also numerous restaurants and bars close by. We ended up getting a room with twin beds but the staff didn't mind us pushing them together and they made it up as a double every morning. When we came back from a full day of shopping and exploring I was happy to see that the cleaning staff even folded our clothes neatly. I always felt comfortable that our belongings were very safe in our rooms. The only draw back was not being able to get a coffee anywhere until 7:00 or later. Being early risers this was not good! You will be awakened by the call to prayer but you will be no matter where you stay in Sultanahmet since it is blasted over loud speakers from every minaret. Overall we would definitely stay here again mainly because of the staff and the location.
Beautiful view of the Mamara from the terrace restaurant in one direction and the back of the Blue Mosque in the other.