We just completed a 4-night stay at Hotel Royal. It was a great choice for us as we were there to visit the Christmas Markets and it was an easy walk to Marienplatz, Karlsplatz, and beyond. It's also an easy walk to the main train station. The staff was helpful and our room was large, clean, and comfortable. We were impressed with the extensive breakfast buffet each morning.
There is a strip club or two in the neighborhood but we never felt unsafe. If you're a light sleeper, we'd suggest that you ask for a quiet room away from the street (or bring earplugs just in case) as it can get noisy at night.
We were happy to get a 10 percent discount by booking direct and showing our R.S. guidebook.
For us, this was a great budget/mid-range stay in Munich!