When I visit Sylt, quite often, I use to stay at van Stephan hotel. And this because the location is unbeatable (you are in the middle of happening in Westerland), and because it is one of the few hotels whose services keep improving every year. I occupied recently the comfort room with terrace from the 4th floor, and everything was amazing. Big, renovated living, with exit to a large terrace with view over dunes, large bedroom with comfortable beds, and a nice bathroom with shower. Everything is spotless clean, and the breakfast room is bright and cozy, with a large choice of food…and sekt :) I have not enough words to recommend this hotel!
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