From start to finish the staff at Athelstane went out of their way to help us.

We booked a dinner bed and breakfast package, and got value for our money.

Pros -
Service - everyone was so, so, so willing to help.
Our waiter at dinner - Ryan - managed to pick-up on the fact that someone at our table was a vegetarian and organised a vegetarian appetizer, without being asked. THAT is amazing service. Offers to carry our bags etc etc ETC!
Private verandah - open the doors from the room and it doubles in size. Breezy and delightful for relaxing.
Modern bathrooms - complete with spa.
Games from the sitting room - I still maintain that 'e-cave' is where the 'e-bear' lives on a triple word score ;)

Cons:
- Breakfast described as '3 egg omlette' came with bacon. Our fault for not asking, really, but all other menu items had descriptions saying "with bacon mushrooms etc"
My vegetarian partner thinks his brekky was cooked in meat fat, again, we didn't ask.
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Rooms are quite small, but I think that you'd expect this, having seen their website. Renovating an old house, and attaching a bathroom to every room, well, you loose some space! I'd rather have the bathroom. They're very simple rooms, but it suits the atmosphere. Not shabby, mostly chic.
It's really, really close to both the main street and the beach.

Great.

This is a very expensive place, and it fell short of expectations in several key areas.

Our room was adequate, but rather small and basic. There was a pleasant private balcony, complete with an ashtray that no one had bothered to empty.

We were informed that our dinner reservation had been lost, but that they would “… try and fit us in somewhere”, which they did. Dinner was excellent but pricey. We were disappointed to find that the advertised guest sitting room, in which we had hoped we could sit after dinner, was booked for a private party which went on very late and kept us awake.

Breakfast was excellent.

On our next trip to Queenscliff, we will definitely consider other options.

Definitely the best place to stay in Queenscliff. Vue Grand/Queenscliff Hotel so overpriced and do not provide value like this place. Freindly staff absolutely awesome breakfast included in the room rate. Modern rooms, very clean and we very much enjoyed our stay there. Would recommend (and have done so) the place to our friends.

What a great find! Was tempted to book at the Vue Grand, however on a previous trip had coffee at this place on the balcony. Quirky and comfortable. Every single person we encountered from check in to check out was very friendly, smiled, and nothing was too much trouble. We were personally shown to our room. The restaurant is fantastic, and breakfast was included in the rate. Definately the place to stay.