Ingliterra is interesting, pleasant, and in a great location, but it's more four star than true luxury.

In Bologna, IMO there's really only one hotel but I can't remember the name. It's a couple blocks from the cathedral and university's historic main building, on the right side of the street as you walk toward the very center (or away from the train station, which is some distance away) and on a street with shops and arches and a roof over the sidewalk. Just be aware that very few of their rooms and suites have bathtubs.

ADDED: It's the Baglioni. Perhaps about a hundred rooms. Good restaurant too (black truffles!) with sidewalk tables.