There are a lot of budget hotels in Hanoi, especially in the old quarter, that are quite decent and lies in the middle of everything. Most of them have free internet and include breakfast in the package. But before you book anything, search the web for reviews and recommendations first so that you won't end up in a rat-infested dump that serves rotten ham and eggs.
We stayed at two hotels in Hanoi. One before we went to Sapa (which will be in another post) and a different one after we got back from Halong Bay (which will also be in another post).
The first one is Camellia 4 Hotel (don't ask me where Camellia 1 to 3 or 5 is because I have no idea), which has US$33 to US$ 37 rooms which are clean and cozy. They don't have a funny smell unlike other hotels and have big bathrooms. My only complaint is that the people in the neighboring building can see some parts of your body while you're taking a shower (at least in our room) so for exhibitionists, feel free to book here. I guess I wasn't able to let out the porn star in me so I kinda felt uncomfortable (good thing we stayed only for a couple of nights).
Buffet breakfast was not so hot but edible and the service staff are nice people. Internet is free at the lobby and it's close to the Hoan Kiem Lake, Water Puppet Theater a lot of restaurants and shops. They'll also pick you up at the airport with an extra charge and can arrange a tour of the city.
Overall, Camellia 4 is a pretty good choice for one who's on a budget. So I recommend it if you want a no frills hotel.
To find out more, their website is http://www.camellia4hotel.com/.
The second hotel was Boss Hotel. Tacky name but great place. The people at the reception can speak French and are just so gracious. The place is also quite new so the room is spic and span with a great bathroom (cool tub!) and a cool PC/TV with free internet.
Breakfast is OK with Vietnamese and Western food selections. I recommend this hotel more than Camellia 4 but it's a bit pricey starting at US$ 75 for a superior room. It's also closer to the center of the old quarter (3 minute walk) where all the action is.
I wasn't able to take pictures of the room (they are small but really nice) but you can see them at http://www.bosshotel-hanoi.com/bosshotel/
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