It is located in a slight uphill, approx. 10mins walk to town center, didn't mind it at all as it was a pleasant walk down there.
You can see overall look of the mountain and town itself, you'll enjoy it.
Supernarket is in 5-7mins walk distance so you can do your groceries and prepare your meal.
Fiona's place has got everything you need. It was very comfortable to stay.
Haven't met Fiona in person during stay as well as check in&out but her organization of the place and preview / description of it is perfect, so I didn't mind at all.
Totally recommendable if you are staying in Queenstown more than a day.