The Harborside Inn is a perfect example.  My friend found this hotel on the internet and the pictures online were, in fact, a fair representation of the actual property.  The inn is fairly small and is about 4-5 stories high.  I don't remember there actually being an elevator (you should call to ask), but the stairs and hallways are narrow, so it may be difficult to maneuver around.

 We had a loft-style room with a queen bed on the ground floor.  The loft had another queen bed and a pull-out couch and access to an outdoor deck.  Furniture was well kept and clean, as well as the bathrooms.

 The hotel also has a free continental breakfast for their guests.  The good thing, too, is that they have a nice sit-down space dedicated to the continental breakfast - it's not just grab and go in the hotel lobby.

As far as the location is concerned, the Harborside Inn is about a block away from the main America's Cup Avenue and walking distance to all the retail, restaurants, and nightlife on the avenue. 

The only time we had to use the car (parking is available at the hotel) was to go tour the mansions and to go to the beach. 

 Beware, though, that Newport Beach can be really windy and uncomfortable if the sand is blowing everywhere.  

Date of stay: July 2006
Purpose of stay: Leisure (With Friends/Group)