We stayed here for 2 nights half-board. The property has a stunning location with breathtaking views from all rooms. The rooms looking down the valley have the best views of the mountains and the Eiger however. I was hesitant about the half board option, but the food was excellent. They do like you to choose from the menu in the morning for dinner, which is a bit odd - but I daresay if you had a violent change of mind during the day they may accomodate the change as the staff were uniformly charming and helpful. We got the largest deluxe room available, and it was modern and spotlessly clean, with 2 little balconies. Really well heated and lots of wardrobe space too.The balcony railings are quite low, watch out if you have children. (And wear sensible shoes and take care if you dont). There are a couple of bars in the hotel, including the 'inferno disco bar' (it's in the basement - so no noise worries) it wasnt on fire when we visited, but it was early, maybe busy later.
I was amazed that a 5 minute international call to the US from the room cost only $1! This is a first for me as I expect price gouging for these calls. Murren itself is as picture-postcard perfect as is possible, clinging to a little ledge with steep mountains above and below. The hotel is about 100 metres from Murren station, and about 10 mins walk (through crunching snow) to the cable car stations to Schilthorn and down the valley.
There is an icerink opposite the hotel, and the nearby ski runs at Almendhuble and futher afield mean you can ski all day and finally ski right up to the hotel door. Schilthorn is a brilliant sidetrip, taking about 2 hours there and back, and Jungfraujoch is a longer day trip taking about 5 hours for the whole trip. Murren is a beautiful car free village, an excellent base for a weekend. The hotel is clean, comfortable, with good food and lovely staff.

Murren is a beautiful small car-free village, with spectacular mountain vistas. The Palace is an ok hotel. The rooms are nice sized, but sparse. The furniture is very bare. The bathroom was very clean, which is always a plus. The carpet in the hallway could definitely be replaced. The staff, however, was extremely friendly.

That said, our room's balcony opened up to some of the most fantastic views one could ever wish to see. For that alone, it was worth the price.

As an aside, I have also stayed at the Hotel Alpenruh in Murren. In my opinion, it is a nicer hotel, even if rated as a 3 star (as opposed to the Palace's 4).

We also stayed for a week at the Anfi Palace as RCI Exchange guests. Many great reviews have already been written, and without a doubt, they are all VERY true! Our stay was simply wonderful.
Our room was on the first floor - very spacious and extremely comfortable, with a small balcony to enjoy the views!!. The Hotels 'halfboard' package was extremely good value for money, and far exceeded our expectations. There was absolutely nothing that we didn't like about the Hotel. Simply put....if you're looking for a relaxing place, with wonderful views, good food, and real hospitality, then this is it! It is also real easy to commute from Murren, we had no difficulties at all. Spent our week visiting all the local sites, including a day in Bern!(using an 8 day Swiss Rail Pass...a must if you're staying for any length)
Please note, Murren is a peaceful little town in the Alps, and is certainly not the place to go to if you are looking for City Nightlife!
There are Bars and Restuarants open at night, but only one or two in the Summer months.

We stayed at the Anfi Palace for two nights as part of our Honeymoon. The rooms were spacious and had wonderful views all around. We used a picture taken on the balcony of our room as our Christmas card picture that year! The staff was wonderful and v ery accommodating! I highly reccommend this hotel and town and can't wait to go back again.