We stayed in a 2 room apartment which was spacious and simply furnished in modern style. All timber is clean cut pine which gives a warm ambience to the hotel. Service was friendly and helpful. Facilities are excellent. The location is about 20 to 25 minutes walk from Zakopane centre but taxis are cheap. There are many things to do in this recreational area of southern Poland. We opted for hiking, sightseeing and cycling (nearby bike hire was cheap) in September. In winter, snow based activities abound. We travelled from Kracow to Zakopane by train - brilliant and cheap!
We liked - the hotel facilies
We disliked - nothing

Very friendly hotel, nice food, nice swimming pool, nice activities for children/teenagers, nice rooms.
After staying at hotel Skalny for a week in feb 2007 and feb 2008, we have just ordered our 3rd stay for feb 2010. We are a party of 5 families with children ranging from 10 to 18 years. The grown ups love this place for the relaxing atmosphere and helpfull staff. Allthough the decor is not one we would have chosen for our home, it's very peacefull and relaxing to have a coffee or a drink by the open fireplace in the bar or relaxing in the sauna and pool area after a day of skiing.
The children love the gym, the pool, the billijard room and often want to have dinner at the hotel rather than in the town centre.
The rooms are clean and they all (nearly) have a spacious balcony with lovely views. The surrounding area offers nice local restaurants and Zacopane is 5 min away with taxi.
Nothing is a problem for the service-minded staff.

The main problem with this hotel is its location - about 45 minutes slog from the station (longer on the way back as it's uphill). That said, once you are there you are within sight of the Tatras and we had a splendid view from our window (The youth hostel mentioned below seemed to be closed, so the football pitch under our window remained mercifully unoccupied!) Taxis are cheap - but the drivers seemed to be in some sort of competition to see who could make the quickest time - scary.
The hotel staff were fine, and helpful. There is a bar right next to reception - and an internet kiosk which is very reasonably priced. Breakfast was extremely basic, but ok, and there was a restaurant but we didn't try it.
The room was basic, nothing more, and the TV reception was terrible! The small pool was always full, so we didn't use it.
There is a lot of building work around the hotel, but to be honest, it didn't bother us that much.
One big tip: If you intend walking to the cable car station to go up onto the Tatras, please be there by 7am when it opens. We had to give up as there was a four hour (seriously) queue when we arrived at 11am (and we were told it can be worse). Half of Poland seems to descend on Zakopane in the summer, so it is certainly not a quiet little mountain town - far, far from it. So if that's what you're looking for, hire a car and go further out.

The Hotel Skalny is a lovely 3-star hotel with well appointed rooms which are very spacious and modern bathrooms. The heated towel rails were really appreciated! The views from the hotel are lovely (even though they were obscured by rain clouds for most of our stay and we could not make use of the balcony. Our opinion is that the hotel probably deserves better than a 3-star rating. Other reviews of the hotel have mentioned its distance from the main street of Krupowki and while it is a 20 minute walk, it is by no means far away and the walk is refreshing, especially after a hearty highland meal. The hotel also has a pool, spa, sauna and massage and beauty facilities. The breakfast is buffet style and included in the room price with plenty of good food on offer. We stayed in October and arrived without a booking. Our initial plan was to stay for 3 nights, but only 2 nights were available. We checked in for 2 nights and thankfully a vacancy came up so we were able to extend for a third night with no problems. The staff on hand were very helpful and provided maps and information of things to do in the area and further afield. Everything about the hotel was fantastic and I would gladly stay there again on future visits.