Just like other comments suggest. The premises are a bit dated but the room and bathroom were clean and everything was working. I did not have any problems sleeping.
Distance from the city centre is an issue and the nearest cafe is 500m away. Since there is no restaurant/breakfast in-house, this can be an inconvenience.
All in all it is okay for the price, but if you plan on staying here, make sure you have a car.
The room is tiny with a half size bar fridge sitting on pieces of timber, the bench above it has a jug, coffee/tea and cups. The bathroom has been renovated but water goes everywhere as it just has the half glass shower screen. The bedding is very comfortable. The whole complex is very run down, has the feel of dorms at a school camp. The girl at reception when we arrived wasn't interested in 'greeting' anyone. We arrived late afternoon and left early for Milford Sound so the hotel was suitable for a quick stopover but wouldn't book again.
The Fiordland Hotel was good value for its money. The hotel itself looks a little rundown but they're in the process of updating. The carpets in the public areas are worn however the bathrooms were obviously recently renovated. There was a large games area which would have suited a family/group vacation well.