After much searching my wife and I settled on staying at this hotel for our short stay in Zermatt. If you are going to stay in Zermatt you just have to suck it up and accept that it will cost you a fair bit compared to other places in Europe.
Having accepted that we found this hotel to be very nice. The room was a good size with a couple of easy chairs (and enough space in the room to accommodate them). Furnishings were modern and seemed quite new (I believe the hotel was recently renovated). There was a large wardrobe if you were staying for any length of time and the bathroom was very modern and huge by European standards.
One of the notable things about the room was the coffee machine (similar to a Nespresso)provided in the room. No milk provided but the staff were happy enough to give us some when we asked.
Staff that we interacted with at the hotel were very friendly and helpful.
The breakfast is quite good with a wide selection of breads, pastries, local cheeses, fruit and cereal.
The hotel is very centrally located in the main part of Zermatt. A very short (5 min) walk down the main street from the train station. There are plenty of restaurant options close by.More