We were just driving through Carmel, looking for a place to stay, Spontaneously. We saw that Lobos Lodge was rated highly on Trip Advisor, so we decided to check it out. Not only is this place very reasonably priced, but it is very clean, and charming. We had a full size room with a king bed, sitting area and full bathroom for only $155 a night. The gave us a free continental breakfast, AND FREE INTERNET! The Lodge is located at the base of town and we were just steps away from all the shops, and from the sea cliffs.
The only drawback? The beds :-( The mattresses are almost like trampolines: very bouncy, no cushioning, and not so easy on your back.