Great location, good value and a nice flat. I think it would be perfect for 4 people - but we were in an unusual situation where we had 6 people - so we used both sofa beds.
The sofa beds and beds were all nice and comfy, but it's not really suitable for so many people, simply due to the fact it only has one toilet.
It's a great location for seeing the sites for Hobart, and we had a lovely stay.