The Sheraton Grand Hotel was a wonderful experience. The hotel is located close to the old town, and certain rooms are able to see the Castle itself. Its an easy walk to the Castle, the shops on the Royal Mile, and the GrassMarket area. I wasn't very impressed with the choice of restaurants around the hotel, but, the breakfast in the hotel was decent (although expensive). This would also probably be a good hotel if traveling on business as it was easy to grab a cab, and there is a bank ATM right outside the entrance to the hotel. I would stay there next time in Scotland for sure.
Excellent customer service from the front staff. Upon checkin, I asked for free internet as a SPG gold customer. They were out of the passes, so, I was told to just purchase the internet online, and they would reverse the charges at the end of my stay. They reversed the charges with no questions asked at the end.