Captain Whidbey Inn is probably the oldest hotel still operating on Whidbey Island. It is very rustic inside and out, and is on a low bluff overlooking the long and narrow Penn Cove. It has both rooms and cabins, and has an excellent dining room and bar. The bar has business cards covering the walls, and the collection grows so fast that they were five or six thick the last time I was there. The rooms and cabins are unremarkable, however, and if you stay in the hotel proper the rooms are small and with thin walls; some have shared baths. These begin at $85 a night.
However, the best places to stay are the individual cabins and cottages with fireplaces, all overlooking Penn Cove. The cabins cost $160 a night. The cottages range from $185 to $225.