The room was very nice with a separate living area/kitchenette. The bathroom was pretty large and had a nice large tub/shower. The bedroom had a shelf for putting your luggage which was nice. The car park was right in front of the room. The receptionist was very friendly and helpful with recommendations for activities and restaurants during our stay.
In my opinion it's more like Radfords NEAR (not "on") the Lake because it is not lakefront but rather a 2-3 minute walk. Other than that, it's a small town and this is a convenient location for walking to everything - and it doesn't seem like there are really any hotels that are actually lakefront. The biggest negative in my opinion is the value for the money. We paid $346 USD for a night for non-lakefront - compared to our prior stay at Seascape Accommodations at Kaka Point for $97 USD for an oceanview room practically right on the beach. And our next stop in Queenstown we paid $311 USD/night at The Rees Luxury 5-star hotel with true lakefront rooms with a balcony overlooking Lake Wakatipo - and The Rees included breakfast, Radfords on the Lake does not. Comparing to those it just wasn't the same value, but maybe Te Anau is just a more expensive place.
There is a Booking FAQ question where someone says breakfast is provided for an extra fee but that is incorrect. You must pick one of the 2-3 cafes in town and go early and/or prepare to wait.
Also, at Te Anau but really all of New Zealand, it is ESSENTIAL to reserve your table for restaurants because they get booked up and even if not, some of them didn't really seem to appreciate taking walk-ins.