Stayed at the hotel for 3 nights in April 2005 with a 50+ person tour group, which this hotel seemed to cater to. The town is quaint and tourist-y, with hotels and gelaterias everywhere, and is moderately quiet at night and suprisingly quiet in early mornings. The meals at the hotel were unexciting but generous, and breakfasts were pretty much standard to european hotels- juice and 4 different kinds of bread with meats, cheese and NO fruit to be found (they sometimes had yogurt.)
No problems with the bathrooms- spacious showers with great hot water, though the towels could have been thicker. The beds were horrible- hard and loud, even the provided cots were more comfortable than the beds. But, there were enough blankets and bearable pillows.
Though the town was quiet, the hotel was not, sound traveled easily down halls, through floors and walls. Whenever someone shut a door, all the windows rattled. Most of the rooms were small, but there was plenty of closet space in all of them.
The town felt rather isolated, the closest town we traveled to was Florence, a 50 minute bus trip away, and I am not sure what the public transportation system looked like in the town. If you have children or are simply eager to do some things out of Montecatini this probably is not the place for you.
All in all, the hotel was bearable and they kept you well fed, but if you're looking for a good night's sleep, bring an air mattress.