We stayed for three nights at Albergo Milano at the end of August 2013, all in Casa Rossa, a second guest building a couple of blocks over from the main one that also features the dining terrace. The first two nights were in the fourth floor at the top of the building, the last one in a very small room on the second floor.
The fourth floor unit is awesome! A nicely situated and quiet balcony directly overlooks Lake Como with a spectacular view. The unit is spacious with a nicely equipped kitchenette with refrigerator (but we weren't there for cooking), lots of windows and a comfortable bed. It's really quite enthralling to wake up with a mountain view directly before your eyes! The bathroom was ample and well equipped, attractive in red tile and the shower had fine pressure. The unit has basically windows on three sides and when the side ones are open, you can hear quiet conversation of the locals on the sidewalk below and then pinch yourself to make sure this fantastic setting is where you are staying. It was well worth carrying both of our 50 pound suitcases up four flights of stairs!
The room on the second floor (there are two on the floor, I believe this was unit 15) was clean and well furnished and quiet, but tiny. It has an enjoyable but shared balcony that also directly overlooks the lake and is adequate. However, the two of us could barely avoid tripping over each all the time. It was a challenge finding space for the suitcases. And there was no kitchenette. We would not have been happy campers had this been our only room. (We had to move because the fourth floor wasn't available all three nights.)
Bridgette and her husband are superb hosts. And the staff was very attentive, helpful and knowledgeable about local activities. Breakfast was very good. We appreciated the different espresso and coffee options and the breads sourced locally.
All in all, a wonderful stay and the place we would definitely return to when we go back. No question about it.