We stayed at the Royal Copenhagen Inn in early January 2013 and got a very economical 'special' rate booking ahead via the hotel's website. Our room was perfectly fine and comfortable with all amenities as promised - good value accommodation.
The location has its pros and cons.
The Royal Copenhagen Inn and Solvang are a good location as a base to explore the wineries and other towns of the Santa Ynez Valley. There are a number of restaurants and cafes within easy walking distance, although the choices for evening dining didn't offer a lot that appealed.
While at first glance, Solvang appears to be a fascinating picture postcard location, it gradually becomes apparent that there is nothing in the town that is genuinely Danish or with any historical merit. In the end, Solvang township is a bit like experiencing the illusion of a themed hotel in Las Vegas - no casino, but instead a few pastry shops and a couple of fake windmills selling tacky tourist items.
So, we'd recommend the Royal Copenhagen as a good place to stay - just don't waste time in Solvang which has little to offer.