Rosscoe said..
This was a few years ago, but we stayed at the Hotel California (yes, really) in Santa Monica. It's a small, not too flash, but cool, hotel a block from the beach. Wasn't on a surf trip when I was there, so don't have the low down on best spots, but found it a convenient location. It's worth hiring a pushbike and riding down the beach path to Venice on a Sunday when they have a market - all the hippies and trippers come out then. Apologise in advance for the holiday snaps, but this will give you an idea (sorry, couldn't make them smaller).
The best part about Hotel California is the casual hours at reception - you can check out any time you like. But seriously, last time I was in Santa Monica, that place was looking pretty tired. If money was no object, you would stay at Casa del Mar or Shutters On The Beach. I've stayed at the Viceroy the couple times I've been there. It's a block back from the beach but still pretty damn good.