I would have LOVED to give this hotel the highest rating because its decor, atmosphere, proximity to Legoland, and service are all AWESOME but we had some serious problems with the noise from the room above us. While we picked this hotel because it was close to Legoland (the primary purpose of our visit to Carlsbad) and because it is fairly new, we were SO impressed with the wonderful staff. Whatever we needed (directions to an attraction, free shuttle, free breakfast buffet, help with a sick child), the staff did everything they could to help. There is a real family atmosphere to the Inn; there were A LOT of children there because it was winter break though I would not hesitate to stay here on an adults only trip. Just off the lobby is a large family room that always seem to have people gathered in it -- esp. at night when the milk and cookies come out fresh from the oven!
The rooms are updated with very comfortable beds and linens.
Unfortunately, we were woken at 5:30 am every morning by very loud banging coming from the room above. I believe the hotel staff tried calling the people in that room but it never helped. The banging also went on from 8 to 10 every night. They would have given us a new room but nothing was available plus with two young children, changing rooms would have been a major hassle. The only other negative to the hotel is that even though Carlsbad is a very pretty area, the hotel is located in a light industrial area in between the freeway and the train tracks (and we could hear the trains occasionly but not the freeway).
I would highly recommend this hotel (esp. for families traveling to Legoland) -- just make sure you aren't on the first floor!