Yes location is important and this hotel has a perfect location. But this is not everything you should look for. Staying in a charming city as Graz will become less charming if you spend a few hours in this unadorned, unsympathetic place.
I was on a business trip, so I did care less, but spending some hours inside at a rainy weekend day was no fun.
I totally understand why people go for personal AirBnB places instead of sterile hotels like this.