Beautiful lobby and restuarant, sub-par everything else
I recently booked two nights to stay at the Palace since the W was sold out. I ended up only staying one night before switching hotels. This hotel is in the perfect location, which is a shame that it is occupied by a mediocre hotel.
Unlike others, I did not encounter any service issues (outside of housekeeping, discussed later). The front desk, room service, valet and concierge were all great and helpful. 
This hotel is beautiful (the lobby at least) and has the air of very upscale hotel. Unfortunately it does not live up to it once you get to you room. 
The rooms are small, not updated lack some basic amenities (like iPod dock). I also found the bed uncomfortable, the shower mediocre and the sheets stiff. 
The worst part of the room is the noise, you can literally hear EVERYTHING that is going on in the hallway or room next to you. I could hear with clarity quiet conversation in the room next door. I am sure they were very upset with me because I started my day off at 6am with conference calls on speaker phone... I am sure it was a huge disturbance. I hardly slept. 
By far the most annoying was housekeeping. I have no idea why, but they started at 8am to knock and try to turn the room.. I kept telling them that I would be in there working till at least noon and to come back. At 9 they began to come by every 15 mins... this proved very awkward since I mostly on the phone and if I was mid-sentence I could not mute it to tell them to go away, so they would enter. How they could not hear me in the room is confounding. After I was done with my morning work, I promptly packed and checked out. 
Will not stay here again... ever.