The location of the hotel is in the old town as advertized. It is surrounded by historic buildings. There are a lot of good places to eat within a block, as well as the Brauberger brew pub.
Even though it is in old buildings, the rooms are quite spacious for a German city hotel. The staff are very helpful. They even loaned me a broom to get the snow off my car. It is a short walk to the main shopping street in town. It took me 5 minutes even in heavy snow. Parking was not as difficult as I expected. There is a large public lot, which is free at night, just a short walk across the river. Also, there are some spaces just across the street, though getting one early in the evening is hard. I like the hotel primarily for it's location, but I also think the price is a good value.
I travel to Luebeck on business several times a year, and plan to stay there again. I would definitely recommend it for a vacation stay, particularly if you don't plan to have a car.