I have stayed at the Cape Beach House in Byron Bay every year for the Bluesfest which occurs during Easter. It is the ONLY accommodation that I consider when travelling to Byron Bay. Katie and her team make you feel like you are part of the family and provide superior service which makes this the most atmospheric B&B that I have ever visited. The healthy and filling breakfasts were amazing - Katie somehow manages to bake different muffins EVERY morning! There are always treats and goodies waiting for you when you return from an excursion to the beach or a music festival. It's only a few steps from the beach and a pleasant walk into town. I can't recommend this place enough!
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