Grand Chancellor is your bog standard boring hotel. Its the base for most conferences etc in Hobart. Nicer (but without the harbour views) is the Old Woolstore apartment hotel - they should have 2 brm apartments. Also try Zero Davey which is opposite the Grand Chancellor but nicer. Also nicer and VERY close is Somerset on hte Pier (I have stayed here and their 2 room apartments are wonderful). If money is no object try 2 rooms at the Henry Jones Art Hotel which is literally on the waterfront. Also if money is no object and you dont mind walking a bit, The Islington in Davey Street has a great reputation.
Hope this helps....What brings you to my home town?