I was pleasantly surprised with how great The Kelvin was. It is a stone's throw from the ferry and train stations.
When I checked in, I was told I had the studio, which turned out to be a fully refurbished studio apartment with plenty of space -- easily the largest room I stayed in while in Scotland, yet the lowest rate I paid. Not only was the room big, but it was clean and comfortable.
There is also a nice bar with affordable drinks downstairs, although I am not sure about the hours of it.
If I am ever in Oban again, I will not hesitate to stay here again!