We were hesitant to book a hotel on the main square, but the rooms to the back are in fact very quiet. The staff is friendly & extremely helpful (our car broke down, they organized somebody to give us a "hot shot" and wouldn't take a dime for all their work! :-) )
The attached restaurant serves a lovely selection of local food at reasonable prices.
Hiking maps for the nearby Giant Mountains are available at the reception.
There's not so much to see in Vrchlabi, but in the surrounding Giant Mountains you can go on many beautiful hikes, e.g. to the Snowpeak of the Elbe source.
Hotel Labut is a great starting point: Big, tasty breakfast, ethnic dinner, a clean, modern bathroom to shower(bathe after the hike and a comfy bed to sleep in.
And if you still have energy in the evening, the billiard room is open and free. And lots of fun! :-)
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