The Mishnish is in the yellow building towards the end of the main street. It is popular with the large number of 'yachties' that visit Tobermory, and decorated with lots of sailing pictures and equipment. There is usually a live band, playing traditional Scottish music at the weekends, and in April it is one of the venues for the Isle of Mull music festival. It might be very busy at this time of the year, so booking might be necessary.
The food is the usual pub grub, served in huge portions, as well as a few home-cooked traditional Scottish meals. The bar serves a range of malt whiskies, including Tobermory which is produced at the opposite side of the harbour, and real ales.
The hotel has a few rooms available, but I'm not sure about the costs.