I'm a Priority Club member and the Rebar was the only Intercontinental Group in Taipei or Taiwan, so I stayed there for 3 nights in March 2007 despite some negative reviews about its location. It may be not be next to any underground station, but I could see Taipei 101 from my window and I guess that it would have taken me 15 minutes to get there on foot or just 10 to the City Hall station. And it's on a busy street, which is a plus.
When you enter the Rebar you get a feeling of "faded glory"; the hotel is in need of being refurbished, especially the lobby or the fitness centre. I've never been in such an old sauna, and it's not a nice feeling, even if it was clean.
I stayed in the Club Floor. The Club itself was always unattended, but I could use the PC every time I wanted so I can't complain really. The room was pretty nice and it looked as though it had been refurbished recently. Good toiletries (L'Occitane, Colgate) and basically everything you may need.
The owner of the hotel, the Rebar Group, was caught in a financial scandal lately and the hotel is to be auctioned by a bank. It may be with the hotel needs (although an underground station nearby would help too...)
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