Carrington Place, in Newcastle's old industrial/port heart, is a charming little reinvention of what was obviously once a blue collar working man's pub.
The staff are wonderful, and it's a fairly central launching pad for exploring greater Newcastle and the Hunter Valley. The restaurant looked pretty good, however there was a wedding on the night I arrived so I was unable to try, but luckily there's other good options within walking distance.
Obviously, be prepared for the shared bathroom situation, as it's very much first in best dressed, and if you can, try to get a room away from the bathroom areas - simply to avoid the high foot traffic noise. Otherwise it's clean and nice and a good budget alternative to more costly stays.