This comfortable and moderately priced resort is smart enough to let its splendid natural surroundings be the focus of attention -- beach cruisers and mountain bikes are loaned out to guests. Situated right on the water, the inn's two-story Cape Cod-style buildings have contemporary interiors amid a quiet garden setting. The inn has been enhancing itself with a spa ambience; features include an on-site massage center and private balcony Jacuzzis for some guest quarters. Rates vary according to view, with the best rooms enjoying unobstructed views of Morro Rock plus access to a bay-front sun deck; those in back face the swimming pool, gardens, and eucalyptus-forested golf course at Morro Bay State Park . The hotel has a romantic bay-side lounge and California/Mediterranean restaurant.