InMiami,

In Santander I like the Hotel Bahía, in front of the bay and the park by Paseo de Pereda. I would describe the decor as contemporary, but not hip or trendy. The rooms and bathrooms are spacious. I like better the location of the Bahía (vs Sardinero) for restaurants at night.

I full agree with cruiseluv, the Hotel Bahia (smoking is not allowed) is just in the center and close to the ferry port.

I personally thought the hotel in SdC was very expensive if you want breakfast. It makes it over 17€ for 2 persons. I bet a local bar could be cheaper and better.
And that brings me on to the choice of the Casa Rural in Muxia do not to forget to add the 7% taxes. It looks like a good base to explore the Costa Morte.
Potes for me is the touristiest location you can find in the Picos. There are better locations to find true Spain in the region.

Mattyou,
We never take the hotel breakfast in SdC, so I wouldn't rule the terrific and stylish Hotel Altair out because of the price of breakfast-just walk out the door and into any bar.

I made no mention above of any hotel recommendation in Potes itself. The hotels I have stayed in while exploring the beautiful Liébana valley have been the Parador at Fuente Dé, the Hotel del Oso in Cosgaya (with pool), the Posada del Bosque in Camaleño (also with pool). The last two inns are members of the Club de Calidad Cantabria.
There is no inn member of this organization in the town of Potes itself.

Maribel: When I mentioned your help with "Potes" I should have written "the Potes area." :-) We're all set now at del Osa. The last thing on my list is www.casadelema.com -- ribeirasacra says it looks good but do you know it? I'm happy to just take the risk but you seem to know all the good stuff, so I'm asking. Thank you.

As fate would have it (long story), we are paying for the Altair through an agent and without breakfast. So all options will be open.

Mattyou: If Maribel does not know the hotel then may I suggest you still book it and risk that it is as good as it looks.....I live near the city but to be honest I have never noticed it because it is slightly off the beaten track...and that, for me at least, is a good thing.
If I go to the city it is eithre for buiness or to show some folks the touristy places.

Mattyou, I understand your attention to detail when it comes to hotels. The right or wrong hotel can make the difference between an ok trip and an unforgettable one.

Maribel, If I may, can I ask you recommendation for hotels on these additional cities: Leon and Oviedo. Thanks again for your kind assistance.

attention to detail can go so far...any more and you could ruin your whole life. some hotels are fine for some vacationers others are not so happy in the same area.
i think it is fun to find something on your own instead of being told what to do.
go on be a devil purchase something different.