We stayed in a Superior Double room with a partial lake view for 10 nights. Definitely pay for the view and a nicer room if you can afford it, I'm not sure of the quality of the classic rooms and the non-lake side of the hotel has no views. The room was clean and comfortable with a mini bar, decent shower, small TV and DVD player. The wifi was reliable but expensive (1 hour free, 5 euros for 24 hours, 10 euros for 3 days and 20 euros for 7 days).
The hotel in general is very grand, with amazing views over the lake from the gardens, terrace and breakfast room. The hotel is in a very quiet location and a 10 minute walk from Pallanza and the ferry point. We were surprised at how quiet Pallanza was as a resort, if you want shops and a nightlife this probably isn't the place for you.
The only downsides were occasionally slow service at reception and at breakfast and the cost of the wifi.