The location of hotel is very good, because in the same time you are on the beach and close to Medina, shops, restaurants, night life...
Sousse Palace is OK hotel, but definitely not a 4 star hotel. Pool nice, beach really close - for me it was not acceptable, and because of that we had big fight with reception, is that even hotel guests have to pay for the sun beds by the pool. There is no parking for guest and we couldn't find parking close to hotel. I would recommend this hotel to other travellers, but only if you don't pay for the room (not per person) more than 70 euro/night..

We booked a 3 days trip to Sousse (supposingly one of the best touristic areas in Tunisia) thru a travel agency in Tunis. The hotel was recommended as a 4 star hotel in downtown Sousse. It turned out to be RIGHT downtown - sketchy people trying to sell you drugs on the street, beaten down buildings (indluding the hotel) absolutely no parking facilities.

The room itself was clean and tidy. Staff friendly. Breakfast and dinner simply horrifying. Pool nice, beach really close but very dirty. Poor water quality. Located at the very end of the touristic area.

NOT CHEAP - 50€ and + per person

I booked this hotel on the recommendation of my Tunisian boyfriend and read the reviews AFTER I'd booked. I was then so concerned I nearly changed hotels but I'm so pleased I didn't.
We were only B&B so I can't comment on the evening meals but breakfast was absolutely fine (though I've had better in terms of choice).
The place was clean and the majority of the staff extremely pleasant and helpful.
A drawback to some British visitors may be that there are very few UK people in the hotel. So if travelling alone you will need your books / music. I didn't feel comfortable venturing out on my own (whilst boyfriend at work) even during the day as there are predators who can be hard to shake off - you just need to be firm! I also got unwanted attention in the hotel itself whilst on my own.
The hotel is right by the beach and Sousse has lots of cafes / restaurants. We ate out every night and our meals usually cost around £7 for both of us. Some great food!
I plan to return.

There must be something positive to say...the hotel is relatively cheap for a Tunisian four star (whether it merits the four stars is another question) and SOME of the front desk staff are friendly. However even getting to the cashier to take my money at check in seemed like too much of an effort. The comings and goings in the lobby bar are amusing to a point. Apart from that....dated dusty shabby rooms, I'm sure the bottom sheet on the bed had been used by another couple, staff greedy for tips, airconditioning just seemed to stop working on last night. Breakfast buffet particularly bad - nothing remotely appetising apart from fried eggs and factory bread - I went instead to a nice cafe in the alley across the street in front; dinner a bit better but soon well combed over for protein by the northern/eastern European package tour crowd. Of all the hotels in Sousse, why Lonely Planet bothers to list it at all is a mystery to me.