We loved staying at Dancing Coyote. We were a couple with a teen-age child. We slept upstairs, our son downstairs. With the sofa bed folded up, we had plenty of room to hang out in the living room. The kitchen was very well stocked and I enjoyed sitting out on our little back decl to have my coffee in the mornings.
The hotel is right on beautiful Drake Bay and there is a lovely deck, surrounded by flower borders, for guests to use. We sat out there one afternoon while waiting for a friend to come up from SF and saw a rainbow arch over the bay. Incredible. My son, who is a birder, saw a lot of interesting birds from the shore behind the cottages.
The only cons: when I booked, the only apartment/suite that remained available was the one closest to the main road. The cottage is lower than the road, but the road is less than 10 yards away, though obscured by vegetation. The first night was especially noisy. We were there in March so could close the windows without it getting too hot. If I could have, I would have chosen the cottage closest to the water. It also has a great deck.
There's a nice (pricey) restaurant right up the street as well as a general store. Point Reyes Station is close by for groceries, especially cheeses and wine. Overall, a great stay at Dancing Coyote!