This is a great little hotel to stay in Castlemaine. It might not be five star, or look all that fancy but everything was very pleasant. The room was well curated with some lovely artistic pieces; the bed was not too soft and not too firm; the pillows were just right and the towels in the bathroom were genuinely some of the nicest towels I've had in a hotel or motel in a long time (and I'm including some supposedly much 'posher' hotels that don't get the towels right!). The owner was also lovely; we had a great chat in the morning as we enjoyed the complimentary breakfast downstairs in the former hotel bar and art space; complete with freshly made coffee. So, all in all, for what is really just an old pub that has been turned into a little hotel - it was very pleasant and a great little stay.
As for location - whilst a little bit out of the town centre it was only a ten minute walk which we enjoyed because you pass some great houses and the streets of Castlemaine have so much character; and around the corner from The Mill - a space with a brewery and an Austrian style cafe which serves great Austrian coffee, food and cakes.