We stayed for 2 nights in a Suite in August 2012.
The Palazzo is a lovely building that has been wonderfully restored. Unfortunately, the experience short of our expectations, especially consider the prices of the suite rooms: The "gallery" is few panels that share a short history of the house. The same space is the breakfast room and, during our stay, was also the dinner dining room. The beautiful main dining room was used for a private event one night (we were given a much reduced menu that night), and was the second night the dining room was simply unused. This was disappointing, as I had called to confirm the restaurant would be running normally during our stay--we were told it was. The library is a sofa in a hallway next to the noisy kitchen. Significantly, the quaint decor and flowers featured on the website were in stark contrast to our lovely, but quite spartan, modern room. We were told by reception that the advertised complimentary afternoon tea does not exist. There was also only 1 complimentary newspaper available for the whole hotel. The website highlights that they offer black-out curtains for the rooms, but they leave on hall lights on that shine right into the rooms (we turned them off but they kept getting turned back on).
Service was very friendly and helpful, but need more training and supervision. Meal orders were confused a dozen times at ours and other tables. We asked for a top-sheet for the bed but were told it was not possible. Food was OK, if a expensive, although the tiramisu (3 bites for 280Baht) was abismal.
Overall, the hotel has huge potential, but falls short of the website and overlooks most of the touches required of boutique and 4/5 star--especially considering the price of the suite rooms. Encouragingly, all of these could be fixed with strong management and through more representative advertising on the website.