I stayed at the hotel for two nights in March 2007 on a business trip and had a pleasant and comfortable stay. I usually stay at budget hotels so it was a nice change to enjoy the trappings of somewhere on the next rung up the ladder.
My room was a double room at the back of the hotel, so I missed out on the sweeping views of the castle from the front, which my other colleagues staying on that side of the building told me about with glee, but I could sneek a peak of it from the window if I craned my neck somewhat!
The room was clean, spacious and nicely decorated in beige and coffee tones. The bed was very comfortable and the ensuite was bright and had a shower and a bathtub to choose from.
Grassmarket is a nice starting point for exploring Edinburgh. There are lots of bars and restaurants nearby and it is close to Waverley station, The Royal Mile and lots of other attractions (...did I mention the castle?!)
Having said that there was a bit of noise from the bars later at night and from bottles being emptied in the early hours, but I suppose that is the price you pay for a central location.
I had dinner in the restaurant downstairs, which had a good choice of reasonably priced food. There is a fancier restaurant on the top floor, where you can dine while looking out at the castle, but you pay more for the privilege.
But fear not as you needn't miss out if you are on a budget, as the top floor restaurant also doubles as the breakfast room and you can enjoy some stunning views of the castle while you eat in the morning, with a good spread of food to choose from. In fact I'd say the view is the hotel's greatest selling point - it's certainly what I remember most from my visit and I would recommend the hotel to you on that alone.
A word of warning though, if you do decide to stay here remember that it is the Apex International, as confusingly there is another Apex hotel on Grassmarket, which looks a bit shabby from the outside so I think this one would be a safer bet.