We spent 4 nights at the hotel and loved it. Fantastic views over the lake and great staff. We had dinner in the hotel a few nights and Marino, Ilaria and Andrea did a fantastic job serving the tables and recommending wine and their specialities. Food was excellent :)
Breakfast was really good too and we enjoyed making freshly squeezed orange juice. The director, receptionist and other members of staff we came across were all very attentive.
The spa facilities were also fantastic. We loved the relaxation room and the fact that it had some teas, fruit and biscuits for guests was something we enjoyed.
We would recommend renting a car as the hotel is not really walking distance from the town centre, it's up in the mountain, which makes it even more beautiful as they views are fabulous. Note that there is a minibus service that is just outside the hotel (careful as it only runs a few times per day, the hotel has the times in the reception and the lady is very friendly and will explain in detail). The cable car is probably about 30 min walk from the hotel but it's uphill, so be prepared to sweat a bit.
We'd love to come back as it was beginning of November for us and therefore we couldn't use the outdoors pool and garden area since it was too cold.
If you are in Malcesine, go for it! Go for Hotel Querceto. :)