Schall und Rauch is a cafe, bar, restaurant, and hotel/pension located in Prenzlauer Berg, a section of the city that was part of former East-Germany, now a trendsetting neighborhood with many restaurants, and bars. It isn't a large fancy hotel with a lot of amenities but it does have a sort of charm of its own.
It is well located, 3 blocks from the U-Bahn and S-Bahn, not far from Alexanderplatz with easy access to the Mitte and central train station.
The staff is quite friendly and the rooms are simple but neat and clean. You won't have any problem getting some help in English if you don't speak any German although the bistro like cafe and bar are popular with the local crowd. They only have a few guest rooms located on the floors above the restaurant but the area is quiet at night.
I've stayed here on two separate occasions and I would recommend it and return myself.