I don't stay at The Palace much (or many other SF hotels for that matter since I live in the area) but I've toured a great many of them and do hold a lot of meetings/event at The Palace. My two cents: The rooms are small-ish but very nice. Street noise is a real problem on the lower floors with "city views." Staff are generally awesome. Tea is quite good but doesn't come close to the Ritz.

Compared to other area hotels, I think it's a pretty great property. It's classic, though it does have its quirks. The Pied Piper is a great bar, as well.

As for the competition. The W properties are not my style so I'm not going to comment on them. The St Regis is nice but not worth the price. And really, who cares about SOMA? It's nice and quite clean but it's soul-less and yuppie (and that's coming from someone who likewise dislikes the Mission in some respects, thank you). The St. Francis is a total wash- it's in purgatory: not old enough to be classic and not new enough to be really nice. Le Meridien is all around very good but The Palace certainly has the better location.