Is this a business trip or pleasure?
If pleasure there are a lot of great B&Bs as mentioned above, but you'd probably want someone else with you to share in the fun. Green Gables, Seven Gables and the Gosby House in Pacific Grove are all wonderful Victorian inns with fireplaces in the rooms and canopy beds.
It's been a while since I've been to the Hyatt, but it was nothing special. The Monterey Plaza Hotel on Cannery Row is very nice. Short walk to the aquarium, on the water, good service, very elegant.