I recently spent several nights at the Hotel La Danae. Franklin and the rest of the staff were muy amable. I paid 1,000 pesos (about $30 US) for a medium size room with private bath & a/c. The room was cleaned daily. Wifi internet worked fine on the first and second floor balconies as well as in my room. There is a kitchen available for guests should you wish to cook and there was always a pot of strong coffee brewing. It was nice to drink my morning coffee on the first floor balcony while I read the news and checked emails on my laptop. Conveniently located in Gazcue, walking distance to the Colonial Zone. Also there's a colmado on the corner that sells tasty empanadas for $20 pesos and Los Hermanos Villar on Av. Independencia for great take out.
There was a good mix of guests de todos lados as well as primos of the owners visiting. Ramon, one of the primos who lives in the DR (la monta?a, porque es muy alto) was more than happy to drive me or mi amiga(s) around for less than the normal taxi fare.
While Hotel La Danae is not a five star hotel, if you're looking for conveniently located budget accommodations with a good atmosphere and great bachata playing on the stereo this is a good option.