If you're looking for an inexpensive place to stay in town, this is your place. There's food, restaurants and bars within walking distance. The bay is very close, but you can't really swim there.
I wouldn't suggest this place if you plan on doing much real cooking there. There is a hot plate, but it's awkward and slow. There is a microwave, toaster and little coffee maker though.
As a non-related note, did you know it rains more in Hilo than any other city in the US! It's what makes that side of the island so lush and wonderful, but make sure to plan for rain. We loved th he sound of the rain floating in through the slat windows in the bathroom.