To stay in Grindelwald versus other towns in the area = my thoughts on that topic below but if you are staying in Grindelwald, this hotel offers you the experience of staying with family while still having your privacy. The owners are so pleasant and authentic. The breakfast experience is worth making sure your daily plans do not start too early because you do not want to miss out on the morning atmosphere. I stayed in a top floor room, and it is so well laid out. The bathroom was upgraded and modern in all conveniences and fits and finishes. They get an A for effort in trying to give you as much privacy as possible while on the balcony, but the back door room design means you might be looking into other peoples rooms if you are out on the balcony. The photos used for the balcony views have a of a glamour shot thing going on but with that said the hotel is such a pleasant experience that I would recommend this to anyone.
This is my third visit to the region and my first staying in Grindelwald. The pros are the easy access to the train going down to Interlaken, buses going up and over the hills and three gondolas going up different mountains. Also, more food and shopping options. However, my favorite towns are Murren and then Wengen and then Lauterbrunnen and then Grindelwald for summer visits. There is just nothing that beats being higher up in the mountains like at Murren and Wengen. I also feel Lauterbrunnen is the most convenient for genuinely being able to expand your daily travel options since it would be the quickest to get back to Interlaken and beyond. Also, it does get a bit hot during the day, and this hotel (like all the others I have stayed at) do not offer AC, so the ones in Murren and Wengen cool off right at dusk.
It is a leisurely 10-minute stroll back to the train station and central areas. I had some friends staying at the Sunstar Hotel, and that also seemed nice in that it was right in the middle of town and had a large lobby and lounge area to hang out along with an indoor pool and expansive lawn in back to hang out and enjoy the views. I would still probably choose the Hotel Gletshcergarten because the quaint family feeling is just more my style.