I first stayed at the Dormy Inn in 2003, stayed a few more times, but this time spent over a week there. Each stay has been good. The rooms are small, but clean, I requested a non-smoking room. Service was good, daily cleaning was good. The counter staff doesn't speak much English, but for information you can ask the tourist offices around town (the one in Sapporo Station is best). The free internet in the room is fast and reliable. There's a laundry room, took some figuring out how to use it cause there's no English on the machines. The location is good, great shopping in the area, and if it's raining you have some good food choices in the same covered block so you won't get wet. Accross the street is a very good Chinese restaurant with excellent dumplings and mapo tofu, there's a popular bar called T2 or something like that,and just down the block is a great Cuban place called Habana.

We stayed in Dormy Inn during Dec 2008, the weather in Sapporo wasnt too cold then (yet)... Dormy Inn is roughly 15mins walking distance from the Sapporo train station, and the main shopping malls..but its situated right on the no-frills Tanukikoji shopping stretch. its only a 5-10mins casual walk to the Susukino stretch (where the famous Nikka Whiskey Advertisement is). so plenty of shops around at this area!
Dont expect too much from this hotel, basically a room just big enough to put in a bed. washroom look like modified version of a mobile toilet. the overal construction of the room seem filmsy..but at least the room is clean