Just got back from the Sheraton Edinburgh on Tuesday. Spent 3 days there. The hotel is well maintained and has 3 restaurants. I am gold and paid for an exec room using an SPG 50. I was upgraded to a Grand room, had the wife and 2 children in tow, and was treated very well. On Saturday made use of the babysitting service £6 per hour, and used the spa. Full use costs £64 for non members but for hotel guests it is £20. Then went for a meal at Santini's located under the spa. The restaurant has won a few awards. It is Italian cuisine and was very good. On the other days we ate at the terraces, which is an upmarket buffet style. Again the food was good, with the added bonus of children under 5 eating free.
The hotel is in Lothian road and 5 minutes walk to the town centre. If you dont wish to get a taxi, the Shuttle bus costs £6 return from the airport. It takes around 20 minutes to get to Hilton Caledonian which is the stop you need to get off in Princes street. It is then about a 3 minute walk to the sheraton which is basically behind the Hilton. Did not check out the lounge as kids were with me. Hope this helps and have a good stay.