My wife and I spent a week at the Alpfrieden, and were completely happy with it in every respect. Our room was a premium one on the side facing the mountains, with a small sitting area that made staying in a hotel room for a week less claustrophobic than might otherwise have been the case. The difference in cost between this and an ordinary double was not that great, and in my opinion well worth it.
Service was fine. The restaurant is quite good -- much better than those in the other hotels we tried (in particular MUCH better than the restaurant in the Bettmerhof). Location is convenient for excursions.
It's also about the only place in town with free internet.
The hotel is some distance from where you arrive in town, and it's worth noting that they will come and pick you up at the station. We didn't notice this, and schlepped our bags all the way up ... there is a tourist phone at the station from which you can call them.
