The hotel Khorezm Palace is centrally located, in the centre of the town. It is of Soviet style. The room I stayed in was large, modern, with good air conditioning and other necessary facilities. The bed was soft, clean and comfortable. The bathroom was of decent size, spotlessly clean and had modern amenities in it. The restaurant is good with good food and friendly staff. The services rendered at this hotel are fine. The place is quite during night times and hence you get a calm and peaceful sleep. I had no disturbances at night during my two days stay here. I would not mind staying at this place again.

Largest hotel in town, Soviet style, owing its succés mainly to all the groups that start "Tour de Silk Road" in Urgensch.
All amenities are top, except for the small swimming pool, that has not seen a cleaning since the first - or perhaps second - Punic War.
Apart from the reception, the staff seems hired for connections rather than qualifications.
If possible avoid Urgensch, as it has very little to offer the average traveller, 30 kms further away to Khiva is a better choice.

The Khorezm Palace is right in the heart of town, just a few steps away from Independence Square. It has spacious, air-conditioned rooms with impeccably clean bathrooms, a decent restaurant and a nondescript bar in the lobby. The small business centre is closed on the week-ends.

Staff tend to be on the uncooperative side (unsurprisingly, as the hotel is state-owned), with the exception of a couple of waiters, who were friendly and efficient.

Should I ever go back to that part of Uzbekistan, I'd rather stay in Khiva (30 km away), which is far more pleasant than Urgench.