Currently, there is a dearth of accommodation located on any beachfront, save for the small scale B&B "Migrator" (www.migrator.com.tw) on Bai Sha island, situated on the edge of the tidal flats facing the inner sea. It has a narrow sand beach at high tide, giving way to vast tidal flats at low tide, facing the inner sea. Quite picturesque, clean and good quality rooms with sea views (3 star-ish would be my guestimate).
Said that, there are well over 200 B&Bs (aka homestays) with widely differing design and overall vibe, indeed, in order to differentiate themselves from each other, their seems to be an all-out attempt to maximise 'uniqueness', and the choices are many, ranging from small family style operations, to boutique mini-hotels, and many others which defy description.
However, you can be on the waterfront at Ocean Hotel in the heart of Magong City, which has the advantage of being close to all the city action & sea food restaurants (www.ocean-hotel.com.tw); a 4 star hotel with rooms for NT$ 2,300 if you negotiate (although I hear prices are rising of late).
There again, why visit an island archipelago, only to locate yourself in a city - however rustic its charm. Outside of Magong - on Magong Island - there are perhaps some of the most 'creative' and interesting B&Bs and local 'scenes', especially along the Fenggui Peninsula.
The area around San Shui, one of Penghu's best beaches, has a large variety of such homestays, with examples such as;
- Greek Frontier (http://greek-frontier.com)
- C'est la vie (www.clv.com.tw)
- Small Orange www.small orange.tw)
San Shui is now gaining a reputation as the "Kenting of Penghu", with its surf scene, restaurants, coffee shops and even a cool bar "the Beach Break" run by foreign surfers, which rents surf boards and serves beer & good cocktails; often at the weekend they have live music, which is a mixture of blues, jazz or world music (www.facebook.com/TheBeachBreak).
Penghu Beach House is a good (quite reasonably priced) option run by local French 'swinger' Julian, and his wife Missy - and their pet duck! (search facebook for link)
If you prefer other water sports such as wind-surfing, kite-surfing, kayaking, cycling, then Sunrise B&B in Huxi Township is certainly one of the best places for a first visit. Run by windsurfer/kitesurfer Jan Hou & his daughter Karen, they have all the kit for such activities and can advise and arrange transport to all the best spots, which are all close by. (http://penghusunrisebnb.theweb.tw/sunrisebnb/index1.html).
Also just opened is top windsurfer Alex Mowday's new B&B "Liquid Sport" - also in Huxi - www.liquidsportpenghu.com
One of the 'funkiest' homestays on Magong island is Seahome run by semi-famous (at least in Penghu) sculpter Mr. Chen Fuqi (see pics above). Very reasonably priced, each 'chalet' is actually a genuine fishing boat, comfortably refurbished inside with Japanese tatami mats, air con, and a small kitchenette. Some are actually floating in the harbour, with other parked on dry land. On last check his website was non-functional (www.seahome.com.tw) alternatively try Tel: 06 921 9282.
Fisherman's island (aka Xiyu) has more & more homestays popping up all the time; one of the more comfortable up-market B&Bs is "23.5 Sky-blue" (23.5blue.tw); rooms start at circa NT$ 2k rooms, but you need to book these early.
The above is by no means definitive, so its also worth investigating various other sources to see what's available. The local government websites may also be useful (but again, are by no means definitive);
- Penghu County Government: http://tour.penghu.gov.tw/en/index.aspx
- Penghu National Scenic Area: http://www.penghu-nsa.gov.tw/
- Penghu Windsurfing: http://penghuwindsurf.blogspot.tw/