My wife and I spent three wonderful nights in Bruges and at the Absoluut Verhulst B&B. We had a good-sized bedroom (not the loft) that had a modern feel (in a 400-year old house). We felt the room was a great value for what we paid for it.
You can tell good B&Bs when it is nearly impossible to get a room because they are so much in demand. At first we couldn't get into Verhulst, but fell into it when the Iceland volcano created an opening for our nights. Luckily for our American friends whose flights to Belgium were cancelled, they were able to rebook at Verhulst in May!
Benno & Freida were wonderful hosts, and their house was nicely appointed and comfortable. They offered free internet and bike rentals at $5/day. Breakfast was delicious and had a lot of variety for any taste. The location is ideal - a 5 minute walk from the Burg and the Markt - far enough away from the crush of tourists - but very close to a number of highly recommended restaurants and taverns.
The Verhulsts accept cash only, and are happy to help you with directions, recommendations, making reservations, etc. They speak English, French, Flemish, German. Absoluut Verhulst was recommended in the travel guide book "Rick Steves' Amsterdam, Bruges and Brussels."
Directions: 5 minute walk east of Burg/Markt
This place is in a building at least 400 years old, tastefully decorated, and welcoming, a short wallk from the enter of town. The owners are gracious and helpful plus they make a great breakfast. Our room was very comfortable with a refrigerator and a view of the garden. My only warning is that the stairs to the second floor room were narrow, and the private bathroom descended from inside the room--a winding stairwell.
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Address: Nieuwland 1, Bruges, 8000, Belgium