We only paid $50 over bookingcom for one night. The room was spacious and clean. Large Flat-TV.
Outside of the room everything is quite old and looks dirty, but inside everything was alright.
We had a room with bay view and were woken up by the sea lions... Really funny.

.. and you won't get anything. Room was clean which is the basic requirement. But indeed the place need a serious fix! It was rather funny to see how lamps would turn down, the door handles would stay in your hand etc... We did not dare to put anything on the table as it would have fallen apart. Never seen nor experienced anything like this before.
But altogether since it was clean and we had a pretty low price for the season (still > 150USD) and the place, I can't say it was horrible- It turned into a rather funny place ( for 1 night only on our way to SF). I am not so sure whether I could recommend it as the stairs may have just tumbled down by the time I write these lines....

Pictures on Internet are not current, the rooms have been revamped. Hardwood floor laminates, clean, proportioned well for queen bed. Flat screen TV, small but well appointed bathroom, remodeled too. Very good location, two blocks to the shopping and water's edge area. No fridge in our room, others may have one so ask for it if you need it. Strong recommendation to take ear plugs and ask for second floor level, at least you won't have anyone walking above you. Walls are very thin, if I had tried I could have heard the conversation in the room behind us. Our neighbor to the right snored louder than my husband who was next to me. Owners come across tired and fatigue, but remain polite.

The reason for staying at Morro Bay, was a road trip in California - so we had only planned to stay one night at Morro Bay. We had booked in advance via" hotel.com" so unfortunately the room was pre-payd.

The room smelled awful, and the bed linens were not clean. We just dropped the key, did not bother to argue with the guy in the "reseption". It was just such a creepy place.

We went accross the street to Ascot who luckilly could offer a room, a wonderful place by the way.