The hotel is situated in Kaleici (spelt Kaa-ley-ji) which is the old city. The easiest way to find the Pansiyon is if you follow directions for Alp Pasa Hotel (don't even need to ask anyone, there are directional arrows on street corners). The host is one of the most friendliest I met during my 3 week trip in Turkey (I spent about 4-5 days at this hotel towards the end of July). Originally, I occupied a single room which is basic and do-able for a backpacker like myself who is used to travelling alone - the room is clean, the bed is comfortable, there's a mini-fridge, there is AC, there is en-suite toilet which is also clean - what more can you ask for, for £15 a night? Perfect!
Later on, my friend joined me and even though we had booked a double room, on it being unavailable, the host moved us to a family apartment at no extra cost. On the day of (Eid) Bairam, all rental car offices were closed but we really needed a car for 2-3 days and the host again came to our aid by calling all his friends till he found us a car.
He also provides a airport drop-off/ pick up service which is provided by his wife - very homely atmosphere. I even remember he gave us some local tobacco on the day we were leaving.
There are plenty of shops nearby for shopping and eating as this being the old town. Also important landmark is the Hadrian's Gate built almost 2000 years ago which is about 3 mins walk from the hotel alongside the bustling streets where you will find plenty of restaurants.