Yes, the rooms are smallish in this gem of a hotel harkening back to a gentler era, but the rate is comparable to a B&B and also includes an ample continental breakfast buffet with plenty of fresh fruit and coffee that's considerably better than what's served in most hotels. (I actually wanted a second cup.) The Oregon Shakespeare Festival theaters are a few blocks away and easily walkable.
A $30 flat fee (not "per night") also allows your pooch to stay with you on the third floor, which has a rear hillside exit onto side streets for "walks" — much more convenient than always going downstairs through the lobby. The hotel staff — and especially housekeepers — make a point of greeting four-footed guests and seem unperturbed by the occasional bark.
The Ashland Springs Hotel has some of the best customer service (including the front desk, service employees, adjoining spa personnel, and restaurant wait staff) that I've run across. Thank you for making me feel like a GUEST rather than a customer.