I booked a family room as it had a double bed and all the double rooms were reserved. I paid £160 for what turned out to be a dirty, squalid, badly equipped, poorly furnished, tatty decorated small room with one three quarter bed and one single bed. The "mini bar" was unplugged in a wardrobe and looked like a fungus factory inside. There were long black hairs inside and on top of the bath. There was scum round the bathroom door frame, tiles and sink which needed a good scrub. In the bedroom the window sills were filthy, the windows broken and there were cobwebs on the ceiling. The small TV had a freeview aerial which showed about three programs. In the morning the breakfast was cheap, burned and prepared well in advance despite there only being 1 hour between 8 & 9 to "enjoy" it. I asked for a slice of black pudding to be told "there is none left", I was the first person in that morning.
Avoid this hotel. It is expensive, dirty, penny pinching, has no parking, no Internet, no restaurant, no bar, no telephone in the rooms, no room service etc etc etc.
It is an embarrassment to the Scottish tourist industry and the owners should be ashamed of themselves for charging up to £220 for a night in this dump.

I missed the last ferry to Mull and had to stay over for one night. The only positive thing you could say about the hotel is it is convenintly located in the town centre. Otherwise the experience was awful.

I paid £60 without breakfast for a single box room overlooking the back yard. I would extimate thet the room ewas last decorated about 1960. The was one electrical socket in the bedroom with a multi adapter into which all aplliances were plugged - television, set top box, clock radio, kettle and hairdrier.

I decide to have a bath at 10.00pm, only to find that the hot water ran out with only 2" of water in it. I then wanted to watch the television, however, the only proramme I could locate was in Gaelic.

Next morning things were no better as the shower was lukewarm.

The hotel was scruufy and maasively overpriced, and I will never reurn.

booked online in a bit of a panic,everywhere else i tried was full on this night , i booked a room which said a "small single room without a view" at £60 without breakfast but i got a double room with a good view overlooking oban so a bit of a bonus to be fair !!
Really nice room,obviously been refurbed recently,but a huge window above the door let in all the light from the corridor so i may aswell left my light on !!
The corridors and hallways are really tired and a bit smelly,like a wet dog .
Overall even with the better than expected room its very expensive,£60 with breakfast extra is not good value in my opinion, luckily calmac provide a good brekkie on the boat.
No car park either ggrr

On arrival in Oban in the early evening, we phoned the hotel to ask for final directions to the place but could get no reply. Having located the Palace, we found the reception cupboard deserted but could hear what sounded like a family meal going on nearby and so we rang the bell. An extremely pleasant and chatty lady came to give us our key, take our payment and direct us to our room, but that was all the human contact we had. The service grade, therefore, is more a reflection of the absence of any service on which to comment.

On that subject, I might as well explain the other gradings.

Cleanliness - no faulting that, although we couldn't quite place the fragrance in the hall (not unpleasant, it was somewhere between mothballs and wet dog and may even have been a rare cleaning solution).

The room was quite small - space for the double bed, the wardrobe, the bedside tables and little else; the bathroom, basic but with a good shower; the sunset over Oban harbour, lovely, but the single-glazed sash window through which we watched it had seen better days and would later let much of the closing-time noise through as if it were wide open. Warmth, at least, wasn't a problem, with the room having its own wall heater.

The closing-time noise and aging window should explain the sleep quality grade, and that leads us nicely on to the location - if you like being in the centre of things and don't turn in particularly early, being right on the sea front shouldn't be a problem, but if you're more of an early-to-bed type (or have an early ferry to catch) you may want to visit the Boots store conveniently located three or four doors down, to buy some ear plugs.

As for value, we weren't terribly impressed. The problem, I suspect, lay in the gap between our expectations and the reality, starting with the fact that the Palace Hotel isn't a hotel at all. It's described as such everywhere - including on its own website - but it is in fact a B&B run in the shell of a hotel. Actually, even that's not quite right: the notice at the reception cupboard announces to newly-arrived traveller that the second 'B' - breakfast - will set them back an extra £6 per head. Having paid almost £90 for the room, we'd more or less assumed that it would be included. There we went again, letting our expectations run away with us.

By the time we came to book our pre-ferry stop, we'd left it so late that we were glad just to find a room somewhere. Had the Palace been more than just somewhere to lay our heads, however, I think we might have been looking for alternative accommodation the next day.