Staubbach is an old hotel with some recent updates located near the end of the town, close to the waterfall. You can book a room facing the waterfall - they have little balconies, not very private, but nice to sit out on if you get lucky and have great weather. The rooms themselves were quite large (though our kids' triple room seemed a little cramped with the extra cot in there), but you're just here to sleep. The breakfast room, with HUGE windows looking out towards the waterfall, was nice, and the breakfast was typical German/Swiss style - yogurt, hard boiled eggs, excellent breads and preserves, real juice, coffee, tea, etc. Breakfast staff actually make a point of talking to all the guests, asking about plans for the day, making suggestions, and giving weather forecasts (weather in the Berner Oberland, as we knew going there, is often miserable for the outdoor activities that bring you there. Therefore I suggest staying at least three nights so you have 3-4 days to hike and explore the area, probably ensuring that you get at least one nice day - and this is in the summer). There is also a large lounge area with TV, books, and computers, and another area with toys for kids. Lauterbrunnen is small, so it is a short walk from the hotel to the train station and all the restaurants in town. The nice British lady at the front desk recommended some good places to eat in town on our first night (we stayed four nights). Our kids loved the elevator. Don't ask me why.
Room Tip: You can request rooms facing the waterfall.
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