Staying at the Panzio is very good, especially if you do not drive. The rooms are large. There is a full kitchen that is shared by 4 rooms. There were two desks in the room. A large shower. External shutters that totally block the light and help insulate in the winter. It is right off the main plaza downtown. Less than a block from one of the main tram lines. Fantastic Christmas market.
The primary challenge is parking. There are two free parking spaces, but getting to them is interesting. If you drive, the smaller the car the easier it will be to park. If their spaces are full, there is other free parking but it appears to usually be full.
The only other thing was the bar across the alley. On Saturday night it was going until at least 0300. My wife had ear plugs and a CPAP and never really heard it. I had ear plugs, but it still came through a little. I fell asleep anyway.
We would recommend it, especially if you have no car or a small car.