I booked for two nights at Bayview B&B after reading reviews here on Tripadvisor, and I was not disappointed. Juan was very helpful, and picked us up at the railway station in nearby Hualian, and drove us back there when we checked out. We chose a room with a sea view, and I would highly recommend this, as it costs only a little more. If you are lucky, you will be able to watch a beautiful sunrise, but if the weather is against you, then it is so relaxing just drawing open one of the windows and dreamily staring out towards the horizon at any time, and admiring the sweeping beach and the mountains in the background. You are only a few steps from the beach, and the B&B has unobstructed views. Juan also has a small hotel a stone's throw away in this peaceful village, and a little further back from the beach, but the B&B is small, and therefore homely and relaxing, and his mum looks after the guests with the personal touch if he isn't around. I am sure the hotel is good too, but I'm told the pace up there is a little faster, so it's horses for courses ...
It's only a few minutes by taxi to Hualian city centre, and the B&B booked us a trusted taxi driver each time we went in. Not only did we NOT get ripped off, the taxi driver gave us a discount because we hired him for the return to the hotel, too.
There is a good, friendly village eatery close-by the Bayview, which is right outside their crafts shop. Try their "Manbor Yiu", which is a very popular fish which can only be found in this area. Also try their very tasty local seaweed. I was lucky as my wife is Chinese and speaks some Mandarin, but if you have any problems, just ask Juan at the B&B. I'm sure he'll write down in Chinese what you want
Meanwhile, the B&B has bicycles which guests can use free of charge. There is a cycling path right behind the beach which stretches for several kilometers. Hualien City was not really my cup of tea. Too busy, too many mainland China tourists. So Bayview was for us a great alternative to a city hotel.
But I came here mainly to visit Taroko Gorge, and that truly lived up to its reputation. If you do spend a day at the gorge, you can have it virtually to yourself before around 4.30pm. After that it is a nightmare, clogged with dozens of buses with mainland tourists.