Which hotel in palermo?

Polly,we stayed at the Hilton Villa Igiea which was right on the water and full of old world charm- it has free secure parking included, a super breakfast buffet, and was on the edge of the hub bub of the central city.
If you have a car, it's probably going to be the same price as the Excelsior, if not, it's going to be more.
Within walking distance are 6 Euro Pizzas and a wonderful bistro, along with the harbor.
Finally, after a wild first day driving in Palermo, it was no worse than Boston going in and out of the city-we did Sergenta, the temples at Agrigento, Monreale(spectacular) and the palace. If you are going outside of Palermo, be aware they take Siesta seriously.
I can honestly say Sicily has been our favorite trip to Italy thus far. We were there late March, and are ready to go back.

Didn't stay there but walked around the premises in the Della Palme. Very nice, has some history to it (I went for the mafia connections) and, for me, seems decently located for sightseeing. I remember checking on room prices and while it was a bit on the expensive side I don't remember it being too bad.

Grand Hotel et Des Palmes has the most convenient location, but be sure to book a remodeled room.

The Hilton Villa Igiea is a great hotel, but its neighbourhood is not very attractive and its location isn't very convenient for Palermo.