I stayed there a couple of years ago for Oktoberfest and was pleasantly surprised. It's not a "luxury" hotel but the rooms were clean, good sized and the staff was very pleasant. At the time, I booked two rooms for myself and my parents and had no problems at all. Based on the ratings scale that Starwood uses, I think it's at a Category 3 which I would agree with. As with many German hotels, breakfast is included with the room price and was very satisfactory. I can't say much for any of the other services provided since, the only thing we basically did there was sleep.
The Hacker Pschorr Festhalle (beer hall) is down at the end of the block and the TheresienWiese subway stop is about a 5 minute walk from the hotel right near the Oktoberfest grounds. If you're connecting over to the Marienplatz, you can either walk to the Hauptbahnhof (about a 10-15 min walk) or take the subway and down and then transfer.
Hope this helps!
