Zhejiang Railway Hotel is quite nice, and it is located at the right side of the Railway Station, the environment is nice, and the room is large, and at night you can have a nice night view of Hangzhou city, traffic are convenience too, you just need to Cross an intersection than you can take the bus Y2 to go to West Lake Scenic Area. And you can easy to get a cab there too.
The price of a Twin bed room is 360 RMB, which is not too bad, and including two breakfast and i think it`s worth of it.