Dolomites...

Not sure what your price point is for a hotel. We stayed at the Hotel Grones in Ortesei. We did the half board option and loved it.

Are you going in June this year?

I've only stayed in Castelrotto and was very pleased with this hotel - https://www.cavallino.it/en/home.html . It's in a nice location and the room was very comfortable.

We also stayed at the Cavallino d’Oro and were very pleased with it. I don’t know about Ortesei, but Castelrotto has a bus hub, making it easy to get down to Bolzano or up to the towns above.

I think you will really enjoy Oritsei.
We stayed in Ortisei and it was a wonderful 4-5 days there. Plenty of hiking, walking to do and the town is within walking distance of many B&B's. Here is where I recommend: https://www.stuacatores.com/en/

Residence Garni Trocker in Castelrotto is a very nice hotel. Close to the bus to take you to Alpe Suisi(not to be missed if you are a hiker). The scenery not to be missed up in the meadow is breathtaking. We were a bit early (end of May) and the lifts in the meadow were not running. Enjoy.

If you stay in Ortisei, you can do significant hiking without ever getting on a bus and as the hotels and B&B s include a bus pass, going to the other towns is free. Stay in Ortisei and be closer to the hiking, enjoy the charm. You will want to buy a lift pass.

Ortisei is unbelievable and like a fairy tale village with so much close by to see and do. We stayed at Hotel Angelo Engel - the room was wonderful, afternoon tea and snacks, and an unbelievable value with the half board option included. I would go back there in a heartbeat!

We stayed in Ortisei on Laurel's advice (she knows!) and had a wonderful five days. We were there in very early June 2019 and some of the lifts were not yet running, but we had no trouble filling our time with wonderful hikes. Would love to return.