This was our second extended stay at Hotel California and it was just as pleasant as the first. Probably the most conveniently located hotel in town. California Ave has a dozen restaurants: Subway is nearby and down the street is Cho's dim sum stand, almost next door to a price fixe $200 per person place. Palo Alto's best wine shop (Vin, Vino, Wine) and weekday bus service to Stanford and the VA hospital.
The hotel has a shared full kitchen and two markets are nearby. Coffee/doughnuts/fruit in the morning, and a washing machine you can use in the evenings.
It is not to everyone's taste: the rooms are small and the furniture is antiquey, but my wife and I wouldn't stay anywhere else.