Last year when I traveled to California with my sister's family we stumbled across a nice hotel in Aptos, California. The hotel is the Best Western Sea Cliff Inn. Despite the lofty sounding name it isn't on a sea cliff, but instead just off the interstate and an easy walk from the beach. The beach's most prominent feature is the Cement Ship (Palo Alto).
The hotel has relatively nice rooms, free internet, microwave/fridge in-room, and a decent full breakfast included. It's a short drive to Monterey and an even shorter drive to Santa Cruz. There's also a grocery store and two coffee shops within walking distance.
Faith and I discovered yet another bonus: nearby hiking. Right across the street from the hotel is the entrance to the Nisene State Park. Here's a map. We didn't have a map when we hiked it so it became something of a typical random-Jerry hike. Along the way we discovered a great single track bike trail.
The photo was taken near the end of our day of hiking and Faith was pretty tuckered out. Near the entrance is an old growth path, which we ended up walking on the way out. Really a nice surprise to find just a couple blocks from the hotel.