I stayed at The Grafton in Sep '11 with my partner and we had a great time!
The room was lovely, the bed was really comfortable, the bath was amazing - really roomy and deep. The rooms were keet spotless!
We had a sea view which was amazing to wake up to! In the room were tea and coffe making facilities, which included some amazing hot chocolate and gorgeous cookies!
The staff were really friendly and so helpful! When our car broke down at the end of the week and had to go to the local garage to be fixed (leaving us not a lot of money to go out) they brought us up some DVDs.
Breakfast was really good, great coffee, orange juice, plenty of choice from toast with jams and marmalade, cereals, full English, vege breakfast, kippers on toast.

The negatives would be:
Breakfast times could be better - after a long day walking up Snowdon it would have been nice to be able to have breakfast up until 10am the morning after.

If you have trouble with stairs then make sure you request a lower floor - we were on the top floor. I'm not sure if there are lifts but then we didn't ask!

The views are great but there is a main road that the hotel is situated on. Although it did not pose a problem. If I had known beforehand maybe I wouldby have booked. However now I know it's not a busy road and didn't restrict sea view in anyway I would book again.
The hotel is in a great location. To explore the local area. Also only 45 mins from Snowdonia. Hiking up Snowdon is a must! You will have to set aside the whole day for as it takes around 6 hours. If you're not fit enough for it (although unless you had extreme health problems anyone can do it) there is a train that takes you to the top and back down.
That bath is amazing after a day up Snowdon :-)
Great Orme is just up the road and you can either walk up or take the scenic drive (for which the is a small charge £1 I think). There is a cute little cafe at the top!
I have to recommend 'fish tram chips' the do great fish and chips and are just across from the trap station (which you can also take up Great Orme).
The shopping is really good in Llandudno and all within walking distance from The Grafton.
Another minor negative is that The Grafton is one the hotels further away from the pier, shops and restaurants. HOWEVER, a trip or two to fish tram chips and all those breakfast you will be glad burn a few extra pounds :-)
Also I am assuming that the further up the promenade you go, the more expensive the hotels become. So a few more mins will save you those kind of pounds as well!

All in all I would definately reccomend The Grafton! I am planning to go back again in May!