The Harvard economics department could use this hotel as an illustration of the law of supply and demand: At busy times, including pretty much every night in the fall, rates seem high for such modest accommodations (supply) -- but you can't beat the location (demand). Smack in the middle of "the Square," the six-story brick hotel is a favorite with visiting parents and budget-conscious business travelers. The lobby and the unpretentious guest rooms were renovated in 2006 and 2007. The rooms are relatively small but comfortable and neatly decorated in contemporary style; each has a flat-screen TV, and some overlook Harvard Square. The front desk handles faxing and copying.