This review is long overdue as we stayed there last November (2012) - but - it was such a nice experience the hotel is still on my mind.
What was amazing to me is we had just checked out of the St. Regis in Monarch Beach before arriving... this charming hotel was just as nice, clean, and stocked as the St. Regis! Obviously the Castillo Inn is not going to be as spacious as a luxury resort - but they made the best use of the space in the room to make sure we had everything we needed to stay comfortably.
I'm big on bathrooms, and this one was clean, and you could tell thought was put into making sure the guest felt comfortable.
They have a complimentary breakfast you can pick up in the lobby each morning - again the thoughtfulness shows - it is just the right amount, quality, and selection for most tastes.
I'm not going to post any photos as we stayed in the upstairs room with the balcony and the photos the Castillo Inn posted are honest and let us know exactly what to expect - so no need to post my own.
The owner was also very friendly and made sure to take great, considerate care of the guests.
Did I mention, you can't beat the price for the quality?
Thank you Castillo Inn at the Beach for making our stay there a fond memory :)

This hotel was clean, charming and very reasonably priced. Definitely a good value for the Santa Barbara area, which can be pricy. All rooms have a cute little patio and the continental breakfast was quite nice for that sort of thing. The staff was very friendly and we had a great stay!

My wife and I stayed here one night in march and were very happy with the place. When you first arrive the parking lot seems a bit small but if you reserve your room you are guaranteed a space. The staff are all nice and tbe manager was nice enough to give us a tourist map of all the good spots nearby. The room was spacious, clean and had some charming decor. The jacuzzi tub in the bathroom was a little small but powerful and great to soak in. The patio was semi private and relaxing. The bed was good, however the towels could be a little softer. Overall we really enjoyed our stay, and would reccomend it to anyone travelling the area.

Stayed there last night based on TA reviews.......it exceeded our expectations. The location is perfect.....the rooms are very comfortable with all the nice amenities and the staff very friendly and helpful.......add to that, the price is very reasonable for SB. We were lucky to get a reservation a few days ahead as they are normally fully booked.