I stayed here with two friends just recently and it was just a totally pleasant experience. The room was great -- small but not cramped even with three of us (traveling relatively light with 3 rolly suitcases and 3 smaller bags). The third bed was a fold-out loveseat, but they added an extra mattress and my friend who slept on it said it was completely comfortable. We requested nonsmoking and a view and got both; the view was not of the palace itself but of a neighboring garden, really nice, and the window could be opened for fresh air.
The immediate location felt like a 9-5 financial area, but (as in all of Japan) we felt completely safe even late at night. Your best bet for food and activity is to head towards Tokyo Station, which the hotel website says is a fifteen minute walk; we found it much less, even with the intense heat. On the way you'll pass a shopping mall (see photos) with several pastry shops and a five-story Maruzen bookshop that has a cafe, and if you go down the escalator there are more restaurants downstairs, even before you venture into the madness of Tokyo Station. Once you're in Tokyo Station, try and find signs to direct you to "Kitchen Street".
Note: plan on being seated for dinner by 9pm, which means if you like browsing restaurants (so much fun!) start looking by 8. Everything pretty much is closed by 10, and while the hotel does have 24 hour room service, it's pretty exorbitant -- 950 yen for a cup of coffee. Downstairs from the hotel lobby there's also a small complex with shops and restaurants we didn't discover until the last day of our stay, which could be a good bet for breakfast.
I also stayed at the Hotel Excel Shibuya Tokyu a few days before, also excellent. I'd stay at either of these again. Probably I would pick this hotel in the spring/fall for its proximity to the palace gardens (which are open most days of the week with no reservation; the palace tour itself, for which you have to make a reservation, was interesting but not fabulous); in the summer I'd probably lean towards a hotel with less walking to Tokyo Station (we never used the subway).
Most entertaining moment: walking into the lobby in our touristy gear, backpacks and Tevas and hats, and discovering some sort of diplomatic reception about to happen, with dozens of formally suited people waiting in the lobby for guests arriving in black sedans. (The palace is a working palace, so there are events going on fairly often.)
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC.