The hotel renovated the rooms recently and therefore they were spotless and accommodating.
Now they should renovate immediately the lobby that was probably built in the early 1970's.
One annoying thing was that they charge 15 CHF for the shuttle service from the central train station to the hotel. I have stayed at many ski resorts and this is the first time that a shuttle for the guests is not for free, especially when the hotel is 15 minutes walk on not on plain level off course...

Stayed here with friend for four nights in early April 11 for long weekend skiing. It was cheapest accom we could find though we paid premium to have view of Matterhorn, so worked out at £180 for two per night incl breakfast.
Rooms very clean, reasonably spacious and small but ample balcony. On 4th floor we could see Matterhorn as promised but we were looking thru scaffolding of a new build hotel. Service in hotel good when we needed a few items, and reception staff v helpful and friendly. Breakfasts were good - cold buffet but v good choice, including lovely fresh breads, fruit, cheeses and ham etc and cereals - hot boiled eggs too. Not much life around hotel in evenings. There is a very pleasant high street in Zermatt for window shopping only!
Location is reasonable - 150m downhill to Matterhorn Sports (and to bus stop) where we had hired skis (over internet as its much cheaper) and about 300m from funicular to get up to rothorn area. Skiing is brilliant for medium/good skiiers with great vertical drops and fantastic views. You definitely have to ski here at least once, though cheaper option is to stay in Cervina on Italian side (which we have done twice before, but you do run slight risk that lifts at top will be closed due to high winds - remember you are skiing most of the time at over 2000m and up to 3800m.
Zermatt is wildly expensive. Eating out in particular is expensive though we found Sparkys thru tripadvisor and highly recommend. In other restaurants expect to pay 30 to 45 CHF for your main course. In Sparkys limited menu but v tasty food with mains around 20 to 25 CHF. It was a pleasant 20 mins walk from hotel.
We walked (with wheeled bags) from railway station on arrival but lots of electric taxis as alternative.

My main criteria for a hotel in Zermatt is proximity to lifts and a reasonably priced place that doesn’t require a 7 night stay. I wanted a room close to one of the lift systems and Hotel Holiday is about a 5 min walk to the Sunnegga (a underground rail that takes you to mid mountain). From there, you can access the Rothorn Paradise or ski down to the other two peaks at the resort.

Rooms - The rooms at Holiday are exceptionally clean and based on the décor, they were probably renovated before the winter season. The breakfast included with our room rate was excellent; a selection of juices, cereal, and cured meat. The staff at the front desk spoke English well and they were very helpful with our questions. Note, not all the rooms have a view (our faced a construction building) and the hotel is just a slight uphill walk (really about 2 minutes) from the road.

Transportation - From the train station (which is also the main road of the town with all the shops/hotels), the hotel is about a 10 min walk away. It’s definitely walk able in the summer but in the winter, the shortest path is slightly steep given how icy all the roads are. Still walk able with luggage if you’re careful. A slightly longer road is less steep but adds about another 5 minutes. Overall, I’m very pleased with the hotel and our skiing experience and would recommend this hotel.

We recently stayed for 8 nights at the Holiday Hotel over Christmas 2010 and were delighted. The hotel is spotlessly clean and very recently remodeled. We had a family room with two double beds together for my husband and I and a terrific fold out love seat for our 9 year old son which the staff made up every night while we were at dinner. The corner room had great views and windows all around and the bath was great. Very cozy and comfortable.

The hotel has a downstairs lobby area with wireless internet (you pay) and I truly wish this was available in your room, but it did force me to go downstairs and meet other people which, in the end, was really nice. My son made friends from Holland and the Innkeepers were very tolerant of having the kids playing in the lobby/living room every night.

The chef/owner is a superb french chef and the restaurant is great. Dinner is a real treat. The half board rate is an extremely good deal. The breakfast is good, although I would like to see a few more hot items.

Location is easy walking to the village and they have ski storage and an electric bus to shuttle you to and from the train station.

Overall a delightful inn and we will return.