We've stayed twice. We have always asked for a room in the Bohdelig, which is a modern annex built above the main hotel so has great views out over the estuary - in fact all 4 Bohdelig rooms have private balcony and views. They are also dog friendly and have private parking.
First time it was bitterly cold January 2011 and the room, and indeed the hotel, was as warm and snug as I would want (and I like my warmth).
The rooms are well appointed boutique style, large comfy bed, comfy sofa and chairs for 'chilling' and a warm bathroom with enormous shower. We just wanted comfort to laze around in. Only possible downside is walking outside and down steps to main hotel.
Hotel staff were lovely, home-made cookies and real milk (not those nasty plastic 'doses') were bought to our room on arrival, and they were always friendly and courteous. Local produce on the menu and good breakfast choice.
Aberdovey or Aberdyfi: Aber - mouth of, dyfii - river Dyfi, is a small town, built between rocky hillside and the estuary, neat and tidy with some interesting architecture (seaside residences to fisherman's homes) and very pleasant to stroll along the 'front' and the harbour. It is home of The Braided Rug Company and a rather nice interiors shop.
It is also a stop on the scenic Welsh Coast Railway which we have yet to 'do'. I have it on good authority that it is well worth a ride. Actually the railway is very close to the rear of the Bohdelig but we didn't find it a nuisance.
Absolutely no hassle when we took the hound on our second trip.
Certainly recommended.

Last weekend my husband & I spent 3 nights at the Penhelig Arms as a base to explore the Snowdonia National Park and call in to my old university town of Aberystwyth
We had a very good rate for 3 nights B & B in what was described as a "small double" room in the main building, there appears to be some rather more swanky appartments attached next to the main building for those who want a bit more luxury.
The place itself is a kind of hybrid pub/restaurant/hotel with a lovely traditional feel about it and set right on the seafront, in the most lovely setting about a 5 - 10 minute stroll away from the centre of the town.
The room had a gorgeous sea view, and although it wasnt the largest room I have stayed in, it was perfectly adequate for 3 nights, very comfortable and I have certainly stayed in smaller rooms that didn't describe themselves as "small".
Chris & Rick, the proprietors were lovely, and had a gorgeous dog, Felix. The place is very dog friendly.
There is a cozy bar attached which seems popular with locals and guests alike and serves real ale and a surprisingly impressive array of gins.
We had breakfast every morning, and I managed to have something different each day, the usual cooked breakfast was nice but I would parcularly recommend the fish (smoked haddock or smoked salmon - both delicious)
We ate in the restuarant just on the saturday, which is I think anyway beautifully and simply decorated with lots of pictures of the local scenery and we had a lovely meal (again, I would particularly recommend the fish) with a good selection of wine at a reasonable price
As for Aberdovey itself, of course we were out of season, but its a really pretty place and the Dovey Arms does a decent basic pub meal and is open 7 days if you just want something simple to eat after a long walk
We were really lucky with the weather and this is a particularly stunning part of the world to explore, from which the Penhelig Arms made a perfect base for us.
Will definitely try to make it back next year

We went to Aberdovey by accident. We wanted to stay in Aberystwyth, but all the hotels were booked. The closest place was the Penhelig Arms.
We discovered a very nice and comfortable hotel, nicely located by the sea.
We really appreciated the dedication of the personnel, the decoration and the food in the restaurant.
The rooms are large and very functional.

Enjoyed our break.hotel very comfortable.Food excellent.complimentary amenities much appreciated.Dog made very welcome.Coming back next year.booked already. really nice location.good walks and nice scenery.Aberdovey town nice to potter around,very friendly,lovely little shops and cafes too.