7 Cedars Casino in Blyn is very close to the trailhead, you can find plenty of lodging down the road a bit in Sequim or in Port Angeles. If I planned to stay overnight again in Port Angeles, I'd opt for the Red Lion as it's right where the trail starts, near shops, and right across the street from a beach area. Not too far from the trail, though not at one end or another, Domaine Madeline is a terrific B&B and not too far from the trail. There are also a couple of places to camp near the trail. The trail takes you right through Sequim Bay State Park and you'll also find camping not right on the trail, but not too far away (at least if you're cycling) at Dungeness Recreation Area. Camping at Dungeness is part first-come-first-serve and part reservation. Note that it's been my experience that, for any campsite in the PNW you need to either make reservations very early or get there before the weekend to stake out your spot for first-come-first-serve sites.