I was a bit upset with a review by a previous author and do not want you to be discouraged by it.
I grew up in Sochi and know the area very well, and even if I do not live there anymore, I still visit city regular for the vacation.
Dagomys, unfortunately, is not 'one of the best' hotels in Sochi; it used to be, however, about 20 years ago. Since 2001 it has been renewed, as I have seen it with my own eyes last May. Some older hotels renewing room by room, consequently, renting old rooms for less money. Most hotels in Sochi will give you a price list with several rooms, do not go for chip ones, as you might get a truly horrible room with old newspapers and not working soviet TV.
For a little more money you will get much nicer room with better facilities. If you do not speak English, and are serious about visiting Sochi, I would suggest Hotel Zhemchuzhina, Redisson Park Hotel or Redisson Lazyrnaya (different spellings)
Dagomys area, places to visit...
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