CP Shin-Kobe is fantastic. Hotel itself is nothing special, but the location, the view, the nearby gondola/garden, it is fabulous.
I've stayed there many times going back to when it was called Oriental something. The mall underneath the hotel (Oriental Avenue... hope it's still there, as I have not been there in a few years) is completely dead but has actually got some quality restaurants. Lobster restaurant Chunagon (my favorite), Kobe beef place, tonkatsu place, bakery/pasta place, on and on.

The real bakery/pastry/sweets district is the area called Okamoto. But even if you don't trek out there, the Sannomiya Station area has all kinds of great desserts and pastries along with everything else. From CP you can walk to the Kitano neighborhood, which I love to walk around although I think some western visitors may not find it all that exciting. I love Kobe, one of my favorite cities in Jpn. Might be my favorite.