We stayed at Hotel Pallanza for 2 nights in May 2014. We were received very warmly by the staff and the room was nice too, albeit no frills. They were very accommodating with our baby and provided a crib in the room also (at a charge) There is some outdoor seating overlooking the lake. The hotel is right outside the ferry station where you can easily catch a ride to the Borromeo Islands (must see Isola Madre) or to Stresa. Plenty of restaurants within walking distance and also nearby lovely Villa Taranto.
Overall, nice hotel, great staff and great location if you want to spend some quiet time on Lake Maggiore.