Housed in an 1890's mill, this 23-room inn won an American Institute of Architects Design Award when it was transformed into a luxury hotel. Old-world and contemporary design work together beautifully: exposed brick walls, pine beams, and high ceilings are lightened by modern pine furniture, and thick carpets. Breakfast (complimentary) is served on the rooftop deck overlooking Newport Harbor, from Memorial Day to Labor Day.