I'm sitting writing in Corona del Mar, 3/4 mile south of town, a smallish friendly family run hotel with a very loyal following. I'm using their free wireless service, and the guests I'm talking to as I write are on their fourth visit.

If you're looking for quality and value and don't mind being a bit further out, Banana Beach is hard to beat. And if you want to be in town, check out Spindrift.

San Pedro has quite a few affordable hotels as well as expensive ones - spend some time in the accommodation area of this site.