I spent 4 nights at the Citadines last month and would highly recommend it for longer stays or for families. It's an apartment-style hotel with all the comforts of home (TV, DVD, sofa, kitchen with cooking hob, fridge) so you get really comfortable. The staff were very friendly and cleaned the room every day - they even washed the dishes!
The location on Bourke Street is very convenient with trams right outside the hotel. It's also a quick walk to Chinatown which has great places to eat.