Excellent hotel that was recently (2012) renovated. They offer nice rooms, can send out your laundry, and serve a nice breakfast on the roof with great harbor views. The hotel is centrally located right off the ferry. It easily had the largest bathrooms in any Italian hotel I have stayed in (which isn't saying much). It is also very close to a bank and an ATM that works with my American bank cards. I lived in the area a while ago and speak a little Italian (Sardo-Italian), which was plenty to speak to the hotel staff. Nobody seemed English fluent, but everyone on the staff was friendly and communication wasn't a problem (same goes for the whole island).
One drawback: the staff are mostly not from the area and work seasonally, so if you ask for advice on the local area or businesses they don't have much in the way of good advice there. The island imports large numbers of seasonal workers in the summer who don't know much about where things are or know much about other businesses in La Madd.
I will stay here again. read more