Having made good an escape from a very poor hotel in another area, we turned up at the Cathrin with our dog wanting a room for 5 nights. Nadia a very helpul receptionist greeted us and sorted us out with a lovely and very clean room, in which I had the best nights sleep Ive ever had on a holiday.
The Cathrin is situated in a fantastic location, very quiet with amazing views. Yes it is simple but provided everything we wanted (I am a fussy traveller), we didnt eat there in the evening, we enjoyed eating in the Village. Breakfast was lovely, well presented and a good selection.
I am not sure if the owners are shy, but they do not interact much with guests, but we found them helpful when we needed some assistance with phone calls to the vets.
We would return and may do so next year.

Positive points: plenty of parking space around the building, closest hotel to the lift (but still need 5 min of walk - so therefore a little bit far from downtown, but it is nice to walk back to the hotel after a "heavy" dinner), refurbished rooms and lobby, efficient and professional service.
The minus: double rooms are really small (just enough room for the bed and the table) and the bathroom is tiny, even smaller than hotels in Japan... The bathroom size is probably just 1m2.
The service is professional but without smile. The owners do not seem really enjoying the work of "serving" the clients... which is a pity as they are in a hospitality industry... In addition, they show their discontentment with comments towards the guests such as "it is strictly forbidden to bring the ski shoes in the lobby", "why don't you respect the rules", "you cannot do whatever you want in this place".... I understand they are rules... but come on... you cannot treat your clients as you treat your own child... You can pass the message in a much more gentle and nice way...
So, although the hotel is very convenient and unfortunately they aren't much choice of nice hotels in Engelberg, I am not sure I will go back there...

We spent three nights at this hotel during a ski trip. It was our first trip to this area and did not know what to expect. First impressions of the hotel was that it was conveniently situated (we walked from the train stop in -15 degree weather and it was fine) and, as others have mentioned, only a three minute away from the Titlis cable car.

The room was small (especially with the cot for our baby - which was provided by the hotel at our request). We had a room under the roof and at times I felt like a giant in it (I am 1.86m). We could not exactly swing around from the chandeliers, but we were there to ski and not to spend time in the room.

During our stay though we came to the conclusion that the owners (who also ran the hotel) were rather dour, but efficient. So much so that we would not return, but rather find somewhere with more friendly owners (the rest of the staff very warmer) for future visits.

The breakfast was, as others have described, typically continental. Nothing special. No Swiss muesli - which I missed.

We never ate dinner in the hotel, but they were kind enough to make us a sandwich one evening when we realised that we were stuck without food.

The area for storing we ski gear was great, the small sauna area clean and functional.

A sign on the table warning you not to pack anything from breakfast for your lunch really summed up our experience.

The hotel was renovated just a few years ago and the rooms are in good condition and very clean, with comfortable firm mattresses and modern practical furnishings, good lighting and a flat-screen TV. The bathroom was very (!) small but had new fixtures and a good fully enclosed shower. A lounge area has been added on near the hotel entrance and is a pleasant place to relax over a drink.

Breakfast was simple, with an emphasis on bread, rolls, cereal accompanied by butter, marmelade, and some sausages and cheeses. (The tea and the jams might have been of a higher grade in this category of hotel.) Dinner is a prix-fixe menu served at a set time (that is, within a half hour window). There is no à la carte restaurant service.

The location must be great for skiing in winter, because the hotel is only a three minute walk away from the Titlis cable car station. In summer, when we were there, the main advantage is almost total peace and quiet ... a good place to sleep. It is about a ten minute walk to the center of Engelberg, where there is a wide selection of stores and restaurants.