We stayed mid-May 2009 and had a very good stay.
The best thing about this hotel is the location - as others have said, you can walk to a number of shopping locations, restaurants (including the Hui (Muslim minority) restaurant Lao Sun Jia, Defachang dumpling restaurant, the bell tower, etc.) You can easily walk to the nearest City Gate (and if you want to tour is, as others mention it is HUGE - about 2 miles per side, so use the bicycles available for rent, or use the golf cart service.)
I am unsure about the rates, as we were with a National Geographic Expedition (some of the perquisites included lecture by the Curator at the Terra Cotta Warriors in the VIP salon, use of the VIP viewing platform and access to the restoration platform - walking among the warriors is quite a thrill!) I would also recommend visiting the tomb of Qin Shihuang, to see another take on terra cotta company for the afterlife .
The rooms are normal sized, and spare - almost ascetic - with firm beds and good HVAC and amenities. HSIA is via Ethernet and CNY 80 per 24 hours, lighting is decent but not remarkable, electricity operation is using a master switch you insert a card in (or, a folded bit of cardboard or heavy paper...
) All the mold cons were provided, including ironing set, and laundry was speedy. Of course, the minibar was overpriced, but this is a hotel.
Service was excellent, the restaurant was quite good (breakfast buffet quite well done,) and the shops are unbelievably pricey - get souvenirs elsewhere (one of our party chose to purchase a full-sized terra cotta replica of a General - he was able to get it to CNY 1,800 at the TC Museum, including shipping to Seattle and insurance - the hotel wanted nearly CNY 8,000 for the same; another indicator is as we stopped to glance, three staff descended on us!)
If I were visiting Xi'an, I would stay here again in a trice, and would not hesitate to recommend it to others.