It is within walking distance, just slightly further away than the Candy Cane Inn. I have to say though that the Candy Cane and HOJOS the other direction are our family's limits. We stayed at Desert Palms for one night once and for some reason that last tiny bit extra walking just felt like more than we wanted. It was doable, just not enjoyable. We weren't really thrilled with the hotel, but it was clean. We really just used it to park and sleep.
It's tucked in to the corner of the block the DLR is on, putting it at SE corner. If you look at www.bing.com/maps/ it is the multiple story building accessed off Katella. It's walkable but many places are closer. And many people will walk from further.
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