Location: it's a few steps from the ferry/boat ports, so you don't have to lug your bags through the island. All the sensational things to see on Miyajima are in walking distance.
Food: I only had breakfast, but people seemed to like the cocktail bar too. Breakfast wasn't complex: half continental, half Japanese, all fresh and good. I appreciated the salads every morning.
Extras: the cheapest coin laundry I ever seen in Japan. Free drinks (including 10+ types of coffee/tea, soft drinks) and ice cream in the lobby.
Rooms: much bigger than the Japanese average, with a fantastic bathroom and an enourmous bed. I personally didn't like the pillows, but that was survivable.
Staff: the best thing in all these good things: everyone was always 100% helpful and kind.
If you come to Miyajima (and you really should), this is the hotel to stay.