There is very little wrong with Montelirio. It´s superbly located and the staff are friendly.
Two things I would suggest: do not eat at their restaurant as it is overpriced (normal for hotels in the center of Ronda) unless you´re feeling lazy and don´t want to move. The food is OK apparently but not fantastic considering the price.
If you can, contact the hotel and ask if they have rooms with a view and not on the street side.
Parking is quite difficult, please contact the hotel and let them explain it to you. Also, do not rely on signs to the hotel to get there, you will get frustrated. You will need to know exactly how to plot your way using a map or GPS to drive through the center of Ronda and into the parking, this way you will save yourself some stress.
I checked availibility for your dates in Ronda and there isn´t much so I would stay with Montelirio.
Food in Ronda: the closer to the gorge (El Tajo and Puente Nuevo) or the main square (Plaza El Socorro) you are, the more tourist traps. There are some notable exceptions:
Bodega El Socorro run by father and son - not super cheap but delicious and honest
Bar Maestro on the Calle Espinel (main walking street) very fresh tapas, the place has been run by the same family since 1950´s, standing room only and you can
point at what you want at the bar which is great!
Further away in the lovely San Francisco neighbourhood: Bodega San Francisco (NOT Restaurante San Francisco) - excellent home made food at good prices and good service. tapas downstairs and dining room upstairs.
Bar Benito - good food, right behing Bodega San Francisco, it is open on Thursdays when Bodega closes.
Across the street from Bodega is Almocobar - more upmarket with arabic influences, gets great reviews.
Places to avoid at all cost: the quite famous Pedro Romero restaurant across the bullring is well known for fleecing tourists.Any of the small places around Plaza del Socorro overcharge notoriously.
I hope that doesn´t put you off - Ronda, though it can get touristy in the mornings is a lovely town. Tourists mill about the famous bridge and go back to their tour bus :))
There are fabulous little corners in Ronda, and several beautiful walks (ask Tony)
Also, you can easily make a day trip to Grazalema (an hour´s drive max) and other small villages. There are Roman ruins (Acinipo) on top of a hil with great views, only a few kilometers away, and you can taste and get to know the (getting more and more famous) Ronda wines.