Last minute decision to go to Tobermory prompted a quick search on internet and we ended up booking this hotel. We stayed a couple of nights and had a good time. Upon arrival we got the option to have a look at two different rooms: 310 (bigger balcony and harbor view) and 307. We choose the 307. Smaller balcony and no harbor view but for us that was okay. Down season special: $65 per night which seemed to us a good price. Yes, the rooms are basic but clean. The beds were comfortable enough and the heater worked fine. A downside could be that it is a bit noisy (you can hear taps running but that's in most smaller hotels). We used three meals at the restaurant (one breakfast and two mains) and they were all good. Good portions, good service and decent food. Also, staff were friendly and helpful, don't recognize any of the complaints of previous reviewers. For us the location of the hotel was perfect with the start of the Bruce trail only a 5 minute walk away. We had a lovely stay at this hotel and would recommend it.
A friend who lives here in Canada explained that the tip asking thing is normal here so we go with the flow although sometimes we feel the 'standard' 15% is a bit much.