I got a very small room with a very small room, but apart from this, I had no reason to complain. Good location close to Old Town (but not too close, so there was no noise from the festival on the Old Market) and reasonably close to the Castle.
We stayed 2 nights at Hotel Schlosspalais, the only room available at the time of booking was a suite. On arrival the hotel was easy to find and there is a parking lot for guests adjacent and cost €5 per day. Our room was huge! Enormous bathroom with spa, and spa shower (I couldn't get the spa shower to work - I don't know if it was user error or if broken so I just had normal showers). I was also surprised to find an exercise bike in the bathroom. There were no toilettrie's in the bathroom (eg shampoo, bar of soap etc) which being 4 star I would have expected. Beautiful view of the castle from our bedroom. Given the amount of windows in our bedroom and the curtains not being blackout the room was very bright from about 5 am. The pool area was a real treat, be sure to ask reception to have the finnish sauna turned on.
This hotel is only a 5 minute walk from the Altstadt and 5 minute walk to the train station where you catch the steam train up Brocken.
Even though I can speak German, my non German speaking wife did have difficulties communicating with the hotel staff as it appears there are not too many English speakers among them (which shouldn't be surprising given we are in Germany). But I am mindful that non German speaking tourists may have difficulty staying at this hotel.
