Hotel Bayview definitely deserves to be the Traveller's Choice for 2 consecutive years (2012-2013). Whatever great about them has already been said and you can expect the same warm hospitality when you arrive.
The pluses: Transport to and fro the hotel for arrival and departure (due to its location away from the city centre), Wifi in the hotel room, scenic views (if you book the ocean view room), free 24 hour coffee bar, free bicycle rental to cycle along the scenic Chisingtan and wonderful service from the hotel boss, Juan. Juan was extremely helpful - he helped us with the bicycle rental, provided us on advice on where to eat around the hotel and best of all, he speaks and writes excellent English. On a sidenote, I think Juan also upgraded my double room to a bigger room, although there was 2 rooms left. Thank you Juan!
The minuses: You need to spend about 100-200NT (Hualien taxi meter starts at ~100NT) to get a cab out of the hotel to the city centre, which is about 10-15min drive. If you're looking for a beach escape, this should not be a problem, just that food options will be extremely limited. It is thus ideal to rent a scooter to get around. Alternatively, you can choose to stay here for 1-2 days, and stay at a hotel/minsu located in the city centre for the next few days, just like we did.
All in all, we enjoyed our stay at Hotel Bayview an the service was absolutely impeccable. Good job, Juan!