The Water's Edge Bed & Breakfast

As its name implies, this modern dormer-style B&B sits right beside an inlet of the bay. It is situated next to Donegal Abbey, off the main R267 road amid a quiet cul de sac of private homes, yet within a 10-minute walk east of town (It is a little hard to find, but hostess Marie McGowan provides precise directions on her web site). There are 4 non-smoking guest rooms, each with TV and modern comforts.