This is a gem of a hotel, although it is not in the town, but rather above it on a hill. From the website, it was not easy to know how far away the hotel actually was from the town. That was the only drawback, is that if you stay more than a day, you will want to take the cog wheel train or a taxi down to the town for meals. The hotel restaurant is very good, but we stated 3 nights and needed some variety. In fact, you really should eat there, the food us highly rated. I would also recommend the 10 minute walk to the little mountain train stop as the way to get around. It is fun, just don't forget to pull the cord on the stop or you'll find yourself up the mountain!
The rooms are a bit out dated, but free wifi is always great. our family sized room was directly at the top of the stairs (number 13?) and had bunk beds and a queen, plus a little balcony with flower boxes which was very quaint.
They are doing some major renovations, adding on to the hotel with a unfortunate modern looking structure that does not match the adorable front facade and could mar the view.