We recently stayed for 3 nights. It's a small hotel mid-way up the mountain, converted from a local manor house. As you walk around the area you'll see many small hotels of similar style, but I think this is a genuine conversion whereas many of the other hotels appear to have been built recently.
The setting is fantastic: the hotel has a great vista looking across the surrounding mountain ranges. The restaurant and bar is based around a lawn with this view, and there is a small church on the grounds that can accommodate weddings. The area seems popular with Italians, Austrians and Germans. Despite being in Italy it definitely feels like Austria: there's even those strange accordion playing yokels with funny hats and a propensity to yodel.
We went in the summer, and the main activities are walking around mountain trails and eating. The trails are well marked, and easy to navigate with helpful maps and information boards dotted around the place.
The accommodation is decent but it's not the Intercontinental (although it prices like it!). The rooms were a good size, clean and "mountain cozy". Lighting was poor in the evening. The bathroom was functional but dated (my grandmother would have liked the little rugs which wrapped around the toilet). It's definitely worth making sure you get a room with a view, because this is the best feature of the place and makes up for any shortcomings.
Breakfast was basic and very much in the Germanic style (cold meats, cheese, etc) - there was no hot food. Service was very attentive, and there was no problem as an English speaker. Dinner at the restaurant was reasonably good, particularly if you like Austrian fair. Food cost was comparable to big city restaurant prices (EUR 35 - 40 per head without wine). Although very hot during the day in summer, it got quite chilly at night, so make sure you bring a good jacket.
We arrived by taking a train to Bolzano and then a taxi up the mountain. We were in the definite minority: almost all the other guests had cars, and for any longer than a few days a car would be a must.
The hotel follows the irritating practice of quoting room prices "per person", so make sure you multiply by two when reading the price list.
Overall its a good place to stay. It's expensive at EUR 140 - 160 / night per room with breakfast, but not out of line with the area.
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