I can't attest to the atmosphere at the Grange, but it's certainly in a good location. I've stayed at the Travelodge on King St. W., also a pretty good location. It's cheap (~$120/night), and has parking, but doesn't have much charm.
The "hip" boutique-y hotels that would be the standard recommendations are the Drake and the Gladstone, but they are both a little too pricey for me - more in the $200+ range.