As you know from above, I stayed at my friend's place but will give you here two hotels that (in my opinion) are the best in Canberra just in terms of location that's in the heart of the city. They are also good if you are on a low budget travel.
The first one is the City Walk Hotel. Closer to the city centre I cant find a thing. This hotel is located above a shopping complex that includes a newsagent, café, clubs, restaurant, medical centre and also for the ladies a hair salon, fashion clothing and shops. When you step out you are already on the bus interchange. You are also a few steps away from the Jolimont Interstate Bus Terminal, taxi rank, cinema, casino and don't forget the pubs.
Maybe on the outside not good on the eye, but if you check their web page you will see it's a neat place.
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Theme: Hotel
Directions: City Walk Hotel
2 Mort Street
Canberra City
ACT 260