We stayed in the Grosvenor for one night while in Nuwara Eliya, we had arrived late, it was raining and we needed somewhere to stay. The Grosvenor hotel had a room available and was cheap, so we decided to stay.
We have stayed in many hostels around the world when we went backpacking a few years ago and this is accommodation we would definitely put into the hostel category, rather than hotel. Rooms were large but had a sparse, unloved feel about them and were unheated which meant it was very cold on a raining night in August. In addition to this, a leaky roof meant that it rained inside our room as well as outside. Thankfully the leaky area wasn't above the bed, so after moving all our belongings to ensure they didn't get rained on, and putting the towels out to mop up some of the rain water, we settled down to a cold, damp sleep.
Breakfast in the morning was equally uninspiring. The only other guests in the restaurant at the same time as us sent their "toast" back a couple of times in an attempt to get it toasted. We didn't bother as we had already waited nearly half an hour for our food to arrive and by that point, we just wanted to leave. The scrambled eggs, when they did arrive were perfectly acceptable. We didn't receive any fruit or fruit juice as we were used to receiving in all the other hotels we had stayed in - we were told that these items incurred a surcharge above what we had paid for B&B.
In terms of location, the hotel is within walking distance of the town. We walked down the the Indian restaurant at the grand hotel to eat in the evening, which was excellent, and very good value.