Since none of the owners of the business ever owned the building itself, it gradually began to deteriorate. Carol Mickelsen bought the property in 1976 with several partners, including Ron Mickelsen. After extensive restoration and remodeling it opened for business as a bed and breakfast inn in 1979, the first of such an establishment in the area.

Everything except the studs came off downstairs, and the old wood was restored. Carol built French doors to lead out into a small intimate garden from the dining area. A lovely sense of a French country inn now prevails in the dining room which seats 56. Original watercolors of the Coastside in the early 1900's by Galen Wolf adorn the walls as well as a collection of colorful oils of the countryside by Geer Morton, Joseph Cave and Ray Voisard.

About the same time as the restaurant restoration, work also began in the saloon. It now gleams of polished wood and brass. Early Coastside photographs hang on the walls, reminding guests of how it "once was" on the Coastside. The impressive collection of large animal heads once hung on the walls of the Museum of Natural History in Santa Barbara.

The hotel entrance was stunningly refurbished and decorated with a 15-foot mirrored hall stand, once in the Palace Hotel in San Francisco. The staircase leads up to twelve guest rooms decorated with antiques of the period and featuring individual touches such as flowered quilts, paintings and findings from local antique shops. One room has a flower-patterned canopy, another a floor-to-ceiling headboard made from antique carved doors. The bathrooms have Victorian fixtures and beautiful stained glass port holders behind the claw foot tubs. For those of contemporary persuasion, there is a sauna as well as a communal shower. The moderate rates include tax and a hearty breakfast. Guests can be treated to breakfast in bed, if they wish.

The restoration is ongoing. In 1981 Carol built a huge deck outside the dining area's French doors. Flower boxes separate the areas, making it a perfect spot for sipping morning coffee or afternoon wine, reading, chatting or munching on deli fare. At night, when the fire is lit, guests sip cognac and watch the stars.

Being avid gardeners, Ron and Carol wanted to plant a garden in the style they had enjoyed on trips to Europe. Ron is owner of the Half Moon Bay Nursery, one of the Bay Area's largest and most beautiful retail nurseries, located on Highway 92, three miles east of Highway 1. The gorgeous garden is now a popular site for weddings.

Carol bought the entire property and business in 1985. She sold the business to her oldest son, Greg Regan, in 1991. Carol remains on cooking and co-managing with her son as well as enjoying the guests in a more leisurely fashion.