I used my annual free category 1-4 night from my Hyatt Credit Card (worth the $85 Annual Fee) for a night at the Hyatt Santa Barbara. This is a category 4 hotel right across the street from the beach, and a good walk (or short shuttle ride) to the pier and State Street.
This is an older hotel, but well kept and comfortable. There is no hotel self parking, only valet parking at $30 a night, but there is plenty of street parking which is free – just keep an eye on the street signs so you don’t park during street sweeping times. As a Diamond status guest, they upgraded me to an oceanview room on the 3rd floor and provided complimentary breakfast in the restaurant downstairs, which included anything on the limited buffet and on the menu up to a value of $88 per room. Also included as a Diamond guest was wireless internet, 4pm check-out and 1000 bonus points or a food/beverage amenity.
Our stay at the Hyatt Santa Barbara was very pleasant and I would love to return for another visit next year.