Girlfriend and I spent last weekend at the Montreal Inn and it met our expectations!
Checking in was a breeze. Desk staff was very friendly and gave us a few tips. Hotel appears that it has a fairly recent facelift. Our Efficiency room was very nicely appointed, clean and spacious. Hotel was in a great location for us- most everything we wanted was within walking distance. Nice to have the outdoor bar, restaurant and liquor store right there!
Staying on the 3rd floor was nice, as we had a (Distant) ocean view. Our visit was not made during the busy season, so we didn't have to contend with too much noise.
We only had two issues, and they weren't enough to stop us from returning. The beds were the hardest I have ever slept on, by far. And the bartenders/staff at the restaurant/bar weren't really too peppy. Perhaps they will improve once they get further into the season :-)
All in all, my first visit to Cape May was very pleasant, and we will return to the Montreal Inn!