I am booked to stay at Inn by the Lake for 16 days over xmas and new year of 2011 / 12.
This will be my third time staying at this hotel for a snowboarding holiday and my fifth time in South Lake Tahoe.
I booked it through www.americanskiclassics.com (UK based) again as it was the most competitive price for a hotel of a good standard in South Lake Tahoe. There are many other options but this is my favourite based on past experience, cost and location.
We asked for our upcoming holiday if there was any chance of a free upgrade to one of the larger rooms at the back of the hotel as last time our room which was perfectly fine was under a large pine tree which would drop pine cones onto our roof in the middle of the night. This was arranged and we are looking forward to the extra space and being right next to the hot tub.

Main Points:
Staff were very attentive and friendly.
Room well looked after by housekeeping.
Bus service prompt and friendly too.
Big comfortable beds.
Free Wifi.
Fantastic view of the lake
Great value for money
Pub a couple of minutes walk away.
Bowling Alley with great pizza which you can take away virtually on doorstep.
Great Hot Tub and pool - I dont stay anywhere without a hot tub on a winter holiday, this one is very good.

We had breakfast in the Big Bear most mornings as it is next door admiring the views of the lake.

All in all a great place to stay, it is not a 5 star hotel but you are not paying for 5 star.Location wise you need use the free bus which picks you up at the front door or drive to get around. It is not in the centre of town but I have never found that to be an issue. Taxis are cheap if you really need one and as the town has casinos they are always available.

PS
In the UK they have commercials / adverts on TV to encourage visits to California, one of the spots they feature is Emerald Bay. Go there on a clear day and take your camera. It is stunning. You will see what I mean.

Nice, comfortable room with a fantastic view of the lake. Friendly staff. Beautiful landscaping around the pool and hot tub. Walking distance to a bowling alley with great pizza and another restaurant for all meals. Look forward to returning.

Our stay was short but the staff was great and the room was very comfortable. Would stay again if in South Lake Tahoe.

Looking for an extended weekend getaway; found a good rate and tempting description for the Inn By The Lake ("Tahoe's Boutique Resort", "Tahoe's Unique Resort with Priceless Views"). Property turned out to be a well-maintained 80's vintage motel. Only boutique-like attributes that I could identify were (a) the provision of terrycloth robes for guest use, and (b) the use of white linen (duvet cover and pillow shams). The rest was strictly motel, well-maintained, but still motel. Front desk staff was cheerful and friendly but weren't provided with any kind of training or desk reference regarding nearby dining and entertainment options. Property had a great Lake view, but was separated from the Lake by busy Tahoe Boulevard.

Pros - Nice, clean, extra large outdoor hot-tub with interesting multi-level design, (adjoining pool looked good, too); pool/tub towels provided in room; room was relatively quiet; property was well maintained; front desk staff cheerful & friendly; reasonable price.

Cons - Motel. Nice motel, but motel, plain and simple.