Spent 4 nights here on one of the best weather weeks in August 05 ($52.00 per night). Lobby was clean and cozy, free newspapers and wireless internet, also a computer set up with $ per min charge for internet. Was given a single queen bed room which included a sofa bed. Kids had the sofa bed and the queen bed was really comfortable. Hotel is an older converted appartment building and it does show...a few broken tiles in the bathroom, water damage on the walls, a/c leaked a little and the carpet could have been cleaner. Otherwise the room was clean and included a fridge and microwave and some disposable plates, cups, etc. It was great for keeping some drinks, water and snacks on hand for our travels around DC.
Price included free continental breakfast which saved us some bucks, the usual assortment of cereal, danishes, bagels, muffins, fruit, yogurt, boiled eggs, fruit etc. Plenty of choice for all members of our family.
Location of hotel was great, walking distance to the Capitol and the museums....and if you are into walking, White House, Memorials etc. are walkable. We walked to the sights and took the Metro back to the hotel (very easy to use). Neighborhood was nice and felt very safe in the area, even at night. A few restaurants and stores at the end of the street and we got good food at both the Mexican and Thai restaurants that are opposite the Capitol South Metro Station.
Parking at hotel is only valet and when we arrived the city was repaving the road so no access to parking, we parked at Union Station for $18.00 per day (less than the hotel valet parking) and did not use the car at all when we were there. Union station was about a 15 min walk from the hotel.
All in all a good hotel, deserving of the 2* rating.

My stay at Capital Hill Suites went well.

The location is great: across from one of the Library of Congress buildings; a short walk to the Capital and Supreme Court. The Metro is less than a block away. There's a good selection of local restaurants and bars nearby. The lobby is small but comfortable with a couple of couches, one computer ($0.25 per minute for internet) and free copies of the Washington Post and USA Today. The employees were nice and helpful. My room was large, but not really a suite. It had a queen-sized bed, a couch, a large writing table with WiFi ($10/day), large refrigerator, microwave, and coffee maker. The bathroom was small but clean and included shampoo tubes and conditioner. The room rate includes a big continental breakfast (several juices, coffee, tea, milk, cereal, yogurt, apples, bagels, English muffins, assorted sweet rolls, and boiled eggs) that was constantly replenished.

Note: A friend came down from New England on the spur of the moment. AAA Telephone rate was quoted at $150. She didn't book and showed up mid-afternoon, hoping to to better. After some in-person negotiating she got a room on Monday night for $99 but was told the rate would go up to $250 for Tuesday.