Close to Waverly Train Station
We stayed 2 nights at the Old Waverley and overall we enjoyed our stay. We did not eat in the restaurants or order room service, so I cannot comment on that.
Our main complaint is that when you enter from the street, you have to walk up stairs to the next floor to check in. In all fairness, they do have a bell in which you can call a porter to take your bags up the stairs, but we didn't do that.
The hotel location is central to Waverley Train Station, the Castle, and Holyrood Palace on Princes Street, but closer to New Town. However, at night unless you walk to George Street, you are not close to any sort of nightlife or pubs. Since we had our 10 year old son travelling with us, it didn't matter to us. After walking from the Underground Vaults and Canongate tour, it was rather late and there was not anything around the hotel that was really open.
The room itself was very spacious and clean, albeit a little dated.
If you have a car, this hotel does not have a car park. I was going to have my clothes laundered, but the price per item is prohibitive. There is a launderette about a mile away, which you can take the 22 or 25 bus for a straight shot.