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It really depends on how much money you want to spend, there are some cheap / CHEAP places and then there are some nice B&B / Boutique Hotels.
The Quest Service Apartments are nice, especially the ones closer to the beach (not in the main street). A little old but still good.
The Cliff Top is a nice BH is over by SMiths Beach off the same road of the track
Glen Isler (spelling?) is another nice BH, is a long walk from Cowes heading the back way to the track.
IMO I wouldn't stay at the castle, unless you like possums running over the roof in the middle of the night.
Depending on the time of year most offer something through wotif.
Good Luck
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