We stayed in Dobbiaco (Toblach) for a week in Sept. 2011 to hike and explore the Dolomites. Very helpful staff, beautiful alpine-typical hotel, nice location, great history of the hotel and owners on display in the halls. Would give it all 5 stars except that they charge for internet access, the parking lot is very small, and the open restaurant selections are somewhat limited. There are other places to eat nearby, so no problem.
This hotel and the owner's family are a big part of Nordic skiing history in this part of Italy (daughter and son-in-law Olympic biathalon champions). Very interesting and beautiful area. Very few Americans find Dobbiaco, and it is a jewel. We felt lucky. English is rare--mostly German and Italian. The owner speaks fairly fluent English, as do a couple of the desk personnel.