The accomodations in Cambria are more quaint B&B than 5*, but they can be very nice. My wife and I liked the J. Patrick House when we stayed there but there are many very nice properties. Dining in Cambria is indeed some of the best in California outside San Francisco (and maybe L.A.). I think you would have a more enjoyable experience, if your goal for going down that far is primarily to visit Hearst Castle, if you stay in Cambria rather than SLO. Of course, YMMV. If you do stay in Cambria, I wouldn't bother with Moonstone Beach and woudl instead opt for something on the mountain side of town. Moonstone tends toward the more pedestrian accomodations (and I really don't mean that to sound snobish).

BTW, for the person who suggested Morro Bay - it is 17 miles the wrong side of Cambria if you are coming from SFO. It is very nice there, though.