For aristocratic style, stay at L’Auberge Carmel, a Relais & Châteaux inn modeled after a home in Prague. Yes, you'll pay an aristocratic price, but it's worth the splurge. Service is impeccable, the on-site dining is excellent, and the 20-room, 1920 building is classically gorgeous. Plus, you're only four blocks from the beach.
Monte Verde at 7th