We stopped in Bend 2 years ago to and from a trip to Idaho and are heading back this Summer. We stayed at Crown Villa
on the way up and Scandia
on the way back. We used bikes to get around and found Scandia a little more centrally located but as other have pointed out, Crown Villa is VERY nice and more quiet compared to Scandia. Scandia has a section of full time tenants but the over niter area is quaint and we met lots of other nice folks there.
If the weather is nice, I would recommend a float down the Deschutes in town. You can go down to the Old Mill Dist. and rent a tube, float down the river and catch a shuttle back up. Very fun and relaxing!