The Royal Oxford Hotel has been dramatically refurbished in the last 12 months and was one of the better hotels I stayed at during my recent time in the UK. It is very well located, has friendly helpful staff, and very well appointed rooms including a daily supply of fruit and chocolates. I really enjoyed my time there and strongly recommend the place to other travellers. Indeed, there were a number of people at reception who shared my view. They could not understand how the hotel had received such bad reviews. The answer is that it is under new management now.
Although the breakfast is a bit pricey, there are good places up in Glouster Sq. near the bus-station (only 5 mins away).