Pros - Great location, both in terms of Pacific Grove and in the region in general. Check-in process was very easy. Staff was quick to answer phone calls when we had questions. Room was clean and bed was comfy with plenty of pillows. VERY hot water. Free parking.
Cons - Technically this was mentioned in the "amenities" section, but there is no central air or heating. There is a fireplace in the room but it did not work our first night there, so we had to use a portable heater (which was provided by the Inn) to heat the room (which it did pretty quickly). The ceiling/walls are thin and you can hear everything that your neighbors are doing (... EVERYTHING!!!). The showers are not very easy to work/understand and the shower head is pretty short (about 5'7" from the bottom of the shower). The parking lot is small/tight, and it is difficult to maneuver in there when other tenants park inconsiderately (although there is free parking on the street adjacent to the Inn).
Summary - Does not quite match up to "luxury" hotels and is more expensive than average 2-star hotels or motels, but overall was a pleasant stay in a great location.