Showing it's age, maybe time for retirement
Pros:
Public areas are classic and the garden court is breathtaking
Location is in the heart of San Francisco
Cheap (found a $139 rate)
Cons:
Small Rooms
Worn Furniture
Loud Street Noise and Noise from hallways
Small Bathrooms
Expensive valet parking
Visit the Palace but don't stay overnight. By its public spaces, this is a luxurious property, but that label does not apply to the rooms. For business, there are at least a dozen better options withing 3 blocks. This is not a good hotel for a business trip. It was nearly impossible to find an electrical outlet unless you intend to sit at the desk all the time. As someone who likes to type from the bed, it was tough making that possible.
The rooms are small, even by San Francisco standards. The room I am in, a Superior King, doesn't have a closet, there's a wardrobe. The bathroom is so small I can barely turn around inside. I will credit the hotel for installing new flat screen televisions, but that seems to be the only new thing put in the room in over 10 years.
This hotel is in the heart of San Francisco, but even in a room on New Montgomery (a side street), it sounds like I'm sitting in traffic. And the wide hallways and high ceilings of the hotel means that a whisper of another guest in the hallway is easily heard. While moderate noise it to be expected at any urban hotel, this property has done little to buffer the sound.
Valet parking is $59 per day, nearly 50% of the cost of a weekend room night. And even by hotel standards, expect a 20 minute wait for your car. 
This hotel is surpassed by many nearby properties. It is not good for business, and not updated enough for a weekend getaway. It is reasonably priced though and the staff is welcoming. In the end, I'd say visit the Palace, but don't stay.