I am staying at this hotel right now. It is a standard, international Sheraton to me. But having traveled for Japan for a week now, I guess I have been spoiled:

I checked in very early, around noon. Still I was informed that there was no non-smoking room available any more. They offered me a smoking room instead, which I tried and found unacceptably smoky. After some looking into her computer the check-in agent did find a non-smoking room after all, but it turned out to be right next to the elevator.

Then I wanted to use the pool, and it costs 21,000 yen.

The carpets and curtains in my room are not very clean and have stains.

And last but not least, I have to pay for Internet access. That's not unusual in "luxury" hotels in the U.S. but less common in Japan in my experience. Even the Imperial Hotel in Tokyo offers free Internet access.

All in all, for all these extra charges this hotel has too many small faults for me to be excited about it.

Am just coming to the end of a 2 week stay here as part of a business trip. The chief reason for staying at this hotel is that my local office that I am visiting is just across the road (Literally, takes 30 seconds door-to-door)

I must say I have been quite impressed with the Sheraton during my time here. The staff are all polite and friendly, and do their utmost to help you if required. They also work very hard at understanding English and communicating in English, which from my point of view is a huge bonus

The hotel has a variety of bars and restaurants to choose from, and I ate at most of them at some point. I would advise against the 2 rooftop restaurants - one french and one Japanese/teppinyaki style. Both were vastly overpriced and far too pretentious for my tastes (even if the views were spectacular). For the money you spend you're better off hopping into Sannomiya for the evening. The downstairs cafe and American sports bar had some good simple food for a reasonable price (by Japanese standards!)

The spa/pool area was very nice (and I was not charged any extra) -usually fairly quiet which is great. The sauna had a classic ice-cold plunge pool next to it and also a hot pool which was great for relaxing in.

Although the hotels location (on Rokko island) means that its removed from the cebtre of Kobe and the nightlife, a bus ran for £2.00 into Sannomiya every 15 mins from just oputside the hotel, which was very useful

Couple of tips - taxis are reasonably expensive but very plentiful around Kobe ccentre - expect to pay £15-20 back to Rokko Island.
Mini-bar beer is remarkably cheaper than the beer in the hotel bars (v rare!)
Try A1-steak house in Sannomiya (the one next to the station, not the bigger one near the Sauna) for some classic kobe beef, and of course ensure you have a pint at Ryans, a wonderful Irish bar in Sannomiya

A favorite hotel in the Kobe/Hanshin area.
Brilliant service from friendly, efficient staff.
Room decor is a little dated, but always clean.
An array of restaurants offers various cuisines, some a little expensive, but in line with international hotel prices.

Located on Rokko Island, about 6 kilometers from downtown Kobe. A shuttle service leaves the hotel, every 15 minutes to Sannomiya Station (downtown). Fare: 360 yen (one-way) per person in 2006.
This shuttle also picks up and drops off at Shin-Kobe (the Shinkansen Station) every half hour. Fare: 420 yen (one-way) per person in 2006.

Airport Shuttle picks up from the hotel at various times during the day. And staff can handle bookings for you. Connects to Kansai Airport in Osaka, and takes about 1 hour.
Shuttle also drops off at this hotel, (though check the schedule as not all Kobe Airport Shuttle services stop at Rokko Island.) About one shuttle per 1-2 hours.

Nearby to various restaurants if hotel fare is not what you are after.

Very good room rates are often available via the hotel's website.

Have stayed here more than 8 times and find it hard to fault. (Apart from having to pay to use the pool!)

Highly recommended.

Stayed at the Sheraton on Rokko Island while on a house hunting trip to Japan. The service was incredible, concierge went way beyond the call of duty in providing information about Japn sights and public transportation. Good sized room with a king size bed - a luxury in Japan! The buffet was expensive, but other than McDonald's or Starbucks it's the only western breakfast you will find on the island.