I just completed a week's stay in Zermatt that turned out beautifully due in large part to the Hotel Allalin. The hotel itself is located in a perfect setting, central to everything, yet on a quiet street near the church. The cleanliness of the hotel is wonderful, the breakfast was tremendous, and the staff was very helpful. It was my first time in Zermatt and many on this forum helped me prior to my trip so I thought that I would add to the knowledge base of Zermatt by touting this great place to stay.
(I know that this sounds like a commercial, but I am simply a satisfied traveler.)
Unique Qualities: The setting, the staff, the breakfast, and of course...the view of the Matterhorn!
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Theme: Bed and Breakfast
Comparison: more expensive than average
Prices: US$120-180
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Phone: 0041 27 966 82 66
Address: Kirchstrasse, Zermatt null
Directions: Between the church and the river
Website: http://www.hotel-allalin.ch/