We stayed at the Hotel Royal Eagle, 26-30 Craven Road, W2 3QB. They spoke pretty good English, though it seemed to be popular with Spanish-speaking tourists.
It was close to Paddington Station and Hyde Park; it seemed like a pretty OK part of town, but it's hard to tell in London. We took a taxi to the embassy the morning of the interview and it cost 12 pounds, but it's not even a mile and a half away. We took a taxi because we wanted to be there on time and didn't know precisely how to get there, though looking at a map we wasted 12 quid.

The room itself was small but it had a TV, air conditioning, clean bathroom, comfortable bed, and was close to a tube station so that's really all you need.