The Riku hotel Schweizerberg (not to be confused with the other Riku hotel in Memmingen) is a great little hotel in a perfect location for exploring the stunning town.
It's fairly small (about 30 rooms I'd say) and 10 minutes walk from the train station.
The rooms are stylish and modern, with a nice (but small) bathroom, and everything is spotlessly clean. The rooms are slightly basic, no tea & coffee facility, and no aircon or fans available, which made our room unbearably hot (the reason I can't rate it 5*).
The service was very friendly although the reception desk is only manned 14:00-22:30. The breakfast was a decent continental buffet although you have to pay for it the night before due to no reception staff there in the morning (€7.50 per person).
What really makes this place is the attached restaurant and brewery (Barfüßer). The food was amazing, freshly made flatbread pizzas, local specialities, and plenty of different home brewed beers. The waiting staff were also really friendly and cheerful, and the food prices were very reasonable. The food here was so good we ate here all 4 nights of our stay.
Overall a great hotel with excellent restaurant. We'd definitely stay here again, although not in the middle of summer. Even if you don't stay here it's worth a visit just for the food.