My family and I stayed there over the Easter weekend (April 2012) and we absolutely loved it! It was my first time in a family own hotel and what a different experience! Everybody was so friendly. Actually, I felt I was staying at someone's grand-ma more than a hotel, and we enjoyed that. The hotel is not what I would call modern, but it is very clean, and welcoming. Our room had 3 beds and we added a cot. It was small, the furniture reminded me of a school dorm, but the bathroom was great and everything was extremely clean. The size of the room doesn't matter to us, we don't spend anytime there except for sleeping. We did book the Easter dinner with the hotel, a 4 or 5 course menu for less than 20Euro (free for kids). It was SO worth it! They have a great chef! For the kids, they simply asked what they would like and ended up making them gnocchi, which were obviously homemade and so yummy. The best I've had at a restaurant! Every day, we were assigned the same table and that was a nice touch. The kids knew where to go, and small treats were always waiting for them!
We wondered around the hotel and played with the kids in the basement. That was your typical grand-ma's basement, with couches and board games! The home feel made it very relaxing and welcoming.
We enjoyed the location, walking distance to the center. We also drove to one of the cable car near buy one day and that was spectacular. One day, we went to The Gardens of Trauttmansdorff Castle, which is only few minutes away by car from the hotel (I would not recommend walking with kids, because of very narrow streets). That was absolutely beautiful! We have a 1 year old and 3 year old so we didn't know how it would go. But they have a kid's course and it was all worth it and very enjoyable. Definitely one of the highlight of our long weekend, along with the awesome Easter dinner!
I'm already thinking of booking again for next's year Easter, although I would like to visit other cities, but if we go back to Merano, we'll certainly check there first.