The Asmara Palace Hotel is the best that Asmara has, but regrettably, it would earn about a C- in most other contexts. It's a large, generic place in the spirit of 'corporate chain hotel meets under-used shopping mall in Nowheresville.' Characterless and mediocre by most measurements, when it tries to import character, like with its so-called Irish pub ("Green Pub"), the hotel fails for lack of effort and authenticity. Breakfast isn't bad -- the occasional flies and pigeons in the dining hall agree with me there! Both species were able to fly in; you should expect to rely heavily on taxis to get anywhere worthwhile due to the hotel's remote location.
But here's my biggest gripe: I chose the Asmara Palace because it included free WiFi and accepted credit cards; no other hotel in town claims this. The Internet connection, already dreadfully slow on a 32Kps service (think dial-up modem circa 1997!), stopped working halfway through my week there. Staff dishonestly kept claiming that it would be back up soon, for four days running.
In the meantime I discovered that the hotel business center has a working Internet connection... that they were charging extra for, no matter that my $135 per night room already, supposedly, included 'free WiFi!' I was given the minor accommodation of a hand-written voucher for two hours of computer time on my last day at the hotel. But I'd already called home to assure all that I was okay, a $29 call.
If Asmara wants to join the twenty-first century, this hotel needs to step up.
Here are a few more negative things: the air conditioning doesn't work properly, with no correspondence between thermostat and response; guests can expect the power to go out once or twice a day -- the hotel generator kicks on within seconds, but it is disconcerting, especially if one is in the shower; and finally, the carpet in my room was dingy and stained. Because the balcony door isn't screened, I also got a good number of mosquito bites.
Positives: the bed was comfortable and the room was generously proportioned. And this: Asmara's one brewery wasn't producing beer for some reason so the week I was there no cafe or bar or restaurant had beer. Except for the Asmara Palace Hotel, in my room's minibar and in the hotel bar!