Just got back and had the oportunity to bracket the trip with stays at Il Palazzo at the Bauer and the Danieli. Here are impressions:

Il Palazzo: upgraded to a canal view room. This had a small, remote feel. Very Quiet (hotel right on Grand Canal with no pedestrian traffic; out-of-way entrance from tiny alley). Room was very elaborate (and very red!). Took photos of the crown molding. Spectacular view.


Danieli: regular room (no upgrade likely due to Venice Film Festival starting - they were apologetic). Larger property with more activity, grand lobby. Suspect that upgrade to a view room would have been mixed blessing given lots of activity out front and likely resulting noise). Room was less elaborate but more up-to-date and seemingly less worn (not that Il Palazzo was shabby).


If you want small small, quiet luxury, recommend Il Palazzo. If you want to feel more like you're in the middle of things, recommend Danieli. Also saw Gritti from the outside and lobby and this one seemed to be more similar to Il Palazzo. Il Palazzo and Gritti are west of St. Mark's in the same area as all the luxury boutiques. Danieli is to the east, about 2 buildings past the Bridge of Sighs.