Inn at Whittier
With its lighthouse-tower design and weathered-looking gray slats, this freshly renovated hotel set among shanties and harbor boats blends in well with its surroundings. The 26,000-square-foot, three-story building sits right on the water, overlooking the harbor. About half the rooms have stunning views of the water and the mountains across the bay. The junior suites and the bi-level town houses also look out onto the bay; the latter have fireplaces on both floors. The restaurant and bar also has great water views.