I had the pleasure to stay at the Fairmont Royal York and thoroughly enjoyed the experience. I had some difficulties in my first room (phone power was poor, door didn't lock properly, etc.) and without hesitation they moved me. The next room they moved me to was grand and very spacious on the 14th floor. The bed, although firm, was comfortable and the washrooms were clean and reasonable.
The hotel is old and thus one needs to be cognizant of this. The TVs are small...very small and not LCD (channel selection was also very poor). Also, much of the furniture is requiring an update, but this won't likely happen anytime soon.
The key to this hotel is the exemplary service. From start to finish I was treated like a Prince (or a King). There wasn't anything that the staff couldn't handle and they did so with charm and grace. The dining experience at the hotel was also excellent with a wide range of options.
A tip would be to utilize the free shoe shining service. This was a nice touch and they did a good job on a very timely basis. Another thing I enjoyed was the fitness room and large pool area. Very nice, clean and a wondrous place for relaxation.
The location of the hotel can't be beat right on Front Street. Great proximity to Union Station for the subway and the Metro Toronto Convention Centre (for major conferences). Although restaurants are a little more difficult to find in the area (at a range of price points), its still worth it and just requires a bit more digging (through Yelp of course).
Enjoy Toronto!