We stayed 7 nights at the Pacha hotel in late April. It is all that Trip Advisor reviewers promised and we would heartily recommend it to all, including families who would feel welcome and at home. In this hotel you really feel you are welcomed to Turkey. There are important things to add to the reviews - both English and French are spoken. The set evening meal is a fixed price, it is exceptional value and absolutely delicious. At around a third of an equivalent hotel meal in the town. I have serious dietary needs and the wonderful patronne / cook served me at least 5 dishes every night which catered to my needs. A miracle! The large restaurant with comfortable wicker chairs serves as a space to spend the evening. Family, friends, other guests all gathered to play board games, chat or sit quietly in a corner looking at the terrific view of mountains and rooftops. There is also a large terrace - but we were there early in the year so it was a bit cold to sit out in the evening. We had two private bedrooms at the back of the hotel up a private staircase with our own keys. These were the quietest rooms and meant that we had total privacy. There are two bedrooms which have doors onto the lounge / dining room and I would avoid these if you are a light sleeper.
We don't usually hire a guide but Uzgur, the brother of Ismail was quite exceptional. He was knowledgeable, he let us go at our own speed and he confidently took us to places we would never have dared to scramble to, and never known about, on our own. It is really worth a day of his time which was not expensive at all.
If you want a formal boutique hotel where you are treated as if you are some kind of God this is not for you, this is a place where you are looked after and welcomed as one of the family. My advice would be to forget the 'romantic' idea of a room in a cave, you will have enough of looking at those during the day, why not have a comfortable dry room with a lovely view? Oh and Ismail organised a hire car, at a very reasonable rate, delivered to hotel, and nearly new. Uzgur was added free to the insurance so we could be collected from distant locations we had walked to (he ran back while we had tea!). Only go to Goreme if you want crowds.