We chose this hotel as we were attending the US Open, and it was the only place that wasn't going to break the bank, and that we didn't have to book 7 nights (only 5 nights). Whilst this place is certainly NOT 5 Star (nor do they claim it to be), it was clean, tidy, and had everything we needed. It's in a great location, only a short walk to a large shopping centre with Safeway and good restaurants. Try the Chinese restaurant … we went twice it was SO good!!
We had no choice but to stay in the "hotel" section, as it's the only rooms with Twin beds. However my parents stayed in a cottage, and it was very cute. They had a problem with their fireplace turning itself on, but it was promptly rectified after a call to reception.
The hotel rooms are obviously much older than the cottages, but had everything we needed. Clean (although small) bathroom, bar fridge, reliable WIFI, and comfortable beds. The onsite management are very friendly and helpful and even lent us a BBQ one night so we could cook our own dinner.
We had a great stay at Carmel River Inn and would stay again if we find ourselves back at Pebble Beach for an Open.