We visited friends in San Rafael and they recommended the Panama Hotel. We were unsure about our choice based on a few odd reviews, but after staying in Mimi's Bungalow for several nights, we can give a great review! Ground floor, farther away from the restaurant, quiet, spacious, clean, nicely decorated, with a comfy bed. The door opens onto a room with a futon, sink, teensy microwave and teeny fridge. Beautiful bathroom to the right (clean, with a new shower, shower head that mists, and grapefruit/ginger toiletries)... And bedroom to the left. Both rooms had nice flat screen televisions and big full-length mirrors. Big, walk-in closet and vanity area behind the bed for clothes and suitcases. (Good area for make-up, since the bathroom lighting is dark.)
Breakfast was nice... Nothing fancy. We ate dinner in the restaurant one night (different management, so we could not add it to the hotel bill) and especially enjoyed the very professional and friendly service. Restaurant is pretty... Especially the patio. It was more quiet for talking out there and they kept us warm with those big outdoor heaters.