I stayed at Katoomba Mountain Lodge for 3 nights and it was worth it. We arrived late, approximately close to midnight but the owner Ron was still there at the train station to pick us up although it was a barely 10min walk to the hostel.
The place was nice and cosy with heaters, a sink and power socket in the room. The bathrooms were nice and clean, as were the dining areas. It was a nice quiet place where one could just relax and read a book and enjoy the afternoon.
Amenities were plenty with a large supermarket within 10 min walking distance and lots of bakeries around the area too.
Ron was a good host and he even came to fix our light bulb when it blew at 11pm one night. This despite him not living within the lodge itself. All in all, it was a nice and friendly place to stay.