Santa Cruz Beach Hotels Are Like This
I've lived in the San Francisco Bay Area (close enough to Santa Cruz to go to the beaches in Santa Cruz several times a week for years), and hotels on or very near the beach in Santa Cruz, especially on the boardwalk, are like this one. Practically all the people who stay at these hotels on the beach stay there to go to the beach and boardwalk, so they spend almost no time in the hotel itself. There is one hotel down the street from this hotel that is an exception, and it costs SIX to EIGHT times the price of hotels like this one. Obviously, people who go with their kids to the beach boardwalk in Santa Cruz are NOT spending $300-$500 a night for a hotel. So, the quality and purpose of the hotel is reflected in the price.
Also, for those of you with no experience with the California coastal hotels and residences, nobody, and I mean NOBODY has air conditioning on the coast. The reason is that it is very cold and foggy at least half of the day in northern California on the coast, and it's similar in southern California. If on the rare occasion it's above the 70's one day, open some windows. I've stayed many times in this area, and a couple of times at this hotel. Thefts are rare, but they happen wherever tourists are found.
Bottom line, this is a decent hotel, typical of the area, and is in an excellent location. Especially if you have a few small children and don't want to walk long distances or drive long distances wasting time parking your car.