I cannot confirm the former negative reviews. Maybe it changed in the past year.
The staff we met was very helpful and friendly and spoke English very well.
The rooms are simple, but good with airconditioning, TV, WIFI, little kitchen (which we appreciated a lot since we wanted to cook ourselves). In our room we had clean linen and towels. The bedroom has no window, but the bathroom and the kitchen area do. For this price we were very satisfied with everything.
The location is good, near the main plaza and within walking distance to a little beach. As backpackers we walked to the train station (Cinisi-Terrasini) about 20 min., the train to the airport Punta Raisi takes about 20 min as well (they also offer airport transfer for 35EUR). However if you want to visit Palermo and/or party, I wouldn´t recommend this location.