I'm going to start out by saying that you have to set your expectations accordingly for a hotel in Grand Marais with lakeview rooms for under $150 (what I paid for a winter stay). From my experience anywhere else in the area is way above that.
I really don't care about 'modern' décor when I'm staying in hotels, but the place could benefit from some TLC (ex. some peeling wallpaper in my room). My room appeared clean, but there are just some items that need to be replaced after awhile (ex. bedspread was worn and the tub floor showed its age). Initially on entering the room it had a fairly strong smell from what I think was the heating. It seemed to dissipate or I just got used to it in the time spent in the room.
I had a second floor, lakeview room with a queen bed and it was good size with table and chairs and fridge (in the closet). It had a large window with a great view of the lake.
The staff was friendly when I checked in. I did not check out the breakfast, but at least they offer something for free.
For my purpose I'd probably stay here again if I had the lake view. It's in a great location right downtown.