I'd strongly recommend this hotel, especially for its location. My wife and I stayed there late last year. As a Diamond at the time, we were upgraded to a nice suite, though perhaps we were just lucky. I would think a basic room would be fine. Very good service all around. Vaguely recall the lounge being ok (beyond the good staff there) but in keeping with the rest of the hotel nothing fancy: some basic snacks and a choice of white or red wine.

Hotel definitely not as modern as some (I'm told the Hyatt, which is somewhere far from the center/old part of town, is spiffier), but I get back to the location being good in that it's inside the "old" part of the city - that old part itself being very big. As already noted, you're therefore much closer to the interesting parts of the city than you would be staying outside of it. A long walk or quick taxi ride (though bring a card from the hotel indicating its address in Chinese) to very colorful "Muslim Street" (which is actually two or three long streets) and other tourist attractions. And in the immediate area of the hotel, which is fine, some restaurants and, more important, maybe a 15 minute walk to the wall that circles the city, and that is a great place to walk or bike along and to see the neighborhoods and sights on both sides. One regret we had was having only a few hours to check out the wall, as we would have loved to walk all the way around it.

Be aware that the air in Xian can be very bad, noticeably so, including at this time of year. We definitely noticed how bad it was as we walked along the wall, but still found Xian to be our favorite city in China and would definitely stay at the Hilton if I went back.