I actually ended up booking this hotel because the one I really wanted was completely booked, but I have to say it ended up working out ok. Pros: the price was very reasonable, specially considering the view we had from our balcony... STUNNING!!! The lake and the views of the Swiss and Italian mountain range was just perfect. The staff was very nice and kind, the room was also very clean and a decent size. Also, they have this really neat lift that takes you up to the tall portion of the hotel and that has magnificent views of the entire town and the surrounding area. Awesome picture spot.
Cons: The location was a little out of the center of Varenna and you do have a hike to do, stairs included, every time you want to come down into the town. The rooms and the hotel itself are a bit on the outdated side, but then again everything else in these towns is so I was ready to not be in a newly renovated modern place. Also, during our stay the the hotel was experiencing some water problems, so we had no hot water for a while.