yes, hotel shows its age: musty odor due perhaps to old carpet or the room is for smokers as it has ash tray, bed mattress is too soft probably overused,
cable tv reception is not sharp and only few channels appear, and room lighting is very minimal and sparse.
yes it has a cheap internet in lobby, and staff is friendly.

i guess i get what i pay for: rates are budget, location is within busy area of city, and don't mind the hookers and pimps who may approach you. just politely say no on your way out at night and you wont be bothered. we all have to earn a living, right?

Hotel Mercedes is an old, fairly run-down hotel with cheap rates that is in a part of Cebu that is possibly dangerous after dark. In Jan 06 they were only using one of the tow elevators to save on electricity. There is a good internet cafe that you can enter inside the hotel. There is an above average restaurant immediately across the street (Pete's). Service is a bit better than most filipino hotels.Golden Valley Hotel is about 200 yards away and a bit more expensive with only one tiny elevator. I will try Kiwi Lodge on my next trip.
Prostitutes will proposition men who are not with a woman as soon as they walk out the hotel's front foor after dark.