I stayed at the LM Etoile back in late 2004 and it was ok. Were given a really pokey room but got moved after having a word with the guy on the desk despite being a "rosbif"

The girlfriend and I (as we were then) found it ok for walking despite not being in the most central location although the nearby metro station was handy for being lazy. A good 10-15min stroll from L'Arc de Triomphe.

Not the most impressive stay and I doubt I'd go back as Paris has some really fine hotels.