Bay Sails Inn now also runs owns Sea Bay Inn and they call it Sea Bay Hotel. They are making great improvements and we enjoyed our weekend stay. Get a bay view room and you'll enjoy wonderful sunsets. It's a great location away from the boardwalk craziness, but within easy walking distance of decent restaurants and good bars. Eash building has a cute little pool that's clean and good if you don't want to go to the beach. The beach is across the main road, but it's manageable. The rooms were a good size and they were clean.....very important. There's even a diner downstairs that was perfect for a filling breakfast or easy lunch.
It was important for me to write this review, because I did wayyyy too much searching on the internet to find a decent hotel in OC and if all you see are so-so or bad reviews you get a little nervous about what type of place you could end up with.