The Khalidiya Palace is in a good location to get around - however it is on a building site. The approach to the hotel is awful - trying to walk out of the hotel is a nightmare - you have to get a taxi just to cross the road! The pool is a good - but the beach isn't quite as nice. Almost impossible to relax with all the speed boats and jetskis zooming past the hotel pretty much non stop. And as you probably guessed - there is another building site on the other side of the beach (although at least they hadn't started building on it while I was there).
The service in the hotel on the whole was very good and the staff were friendly and helpful although at times the pool bar service was almost non existent! The rooms were kept very clean and the food in the hotel was good (although most nights we ventured out of the hotel).