Dammam Palace Hotel is just behind the Sheraton Damman, so you have the advantage of location. It is a budget hotel very close to corniche, with not extra ordinary service or amenities. I had stayed in one of their suite, rooms are bit out dated but it is worth for the price you pay.

The hotel was clean, the staff friendly, the food great and varied, and the sun was shining. Had a great time and well earned rest. Its not a luxury hotel, but I don't think you can expect a 4 star in KSA to compare with a 4 star in Spain. Overall, it was great and I will be returning

Stayed here for 2 nights in February 2009.

Check-in was smooth.
The room was clean and the room service was good.
Can't comment too much about the hotel location because I really didn't see anything of the city as I had a very tight schedule.

Used the hotel's free wireless internet connection.
At first, it didn't work, but they solved the problem after sending someone to the room.
Overall, the connection wasn't anything like whats available in Europe, but thats normal for Saudi Arabia.

The room didn't have a hair-dryer, but, after calling the housekeeping they immediatly sent one to the room.

Overally, a good hotel and I had no real complaint.