Blue Harbor if you want to be able to walk to dining, shoppes etc. Glenmoor if you'd rather be in a quiet spot right on the water, a few miles outside of town.
Blackberry Inn in is lovely and walkable to town.
Glemoory By the Sea offers a quiet location with wonderful views where we are currently staying for the 5th time.
I stayed at The Lord Camden Inn right on the Main Street. Couldn’t be better situated for walking around the downtown area. Rooms were very clean and comfy...good breakfast included.