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We just checked out after 4 wonderful days at the Atlantic Breeze, and I have already recommended it twice to others on their way to Cape Town. We are a family of 4 with two kids aged 1 and 3. On one day's notice, Jo went out and bought a crib for our use (she has only been in business a few months, and we were the first guests with a baby), set up an extra bed for our older boy, and stayed up till midnight to welcome us despite our failure to call (when our flight to CT was delayed two hours). No extra charge for the 2 kids, by the way.
The lion room, where we stayed, was large enough to accommodate the extra twin bed and crib with room to spare. Bed was comfortable and the room stylish and cozy (down to the free cookies and kit kats replenished each day).
The public areas were modern and beautiful, both indoors and out. We also really appreciated the honesty bar with quite cheap prices for wine, beer, spirits, and non-alcoholic beverages (plus free tea and coffee, both in room and in public areas downstairs).
Jo was a superb hostess -- she cooked delicious breakfast each day from a fairly extensive menu, had wonderful suggestions on restaurants and activities, and was a pleasure to be around.
The guest house is located just 2 blocks from Sunset Beach, which provides unparalleled views of Table Mountain, especially at sunset (hence the name). We used the beach to take our family Christmas photo, such a great background it was.
Wifi is available, and inexpensive (25 rand for 100MB usage), but not free. Speed was adequate.
Racking my brain for any downsides, the most I can come up with are these:
1) Could have used a bathroom fan to help dehumidify after showering, but otherwise the bathroom was beautiful;
2) Our room, and most if not all the others, are internal and open into the open concept upstairs of the house. This would be fine, but the doors don't provide much soundproofing. So you could hear people coming into the house from the room even with the door closed. This isn't the sort of place that attracts drunken, obnoxious college kids, so this really falls more into the category of potential concern. I certainly was never bothered or awoken by anyone other than my own kids.
Stayed December 2011, traveled with family