My partner and myself had stayed here last year and came back this year. Of all the places we stayed in in Ireland, this was the best combination of accommodation and location.
The location is Dunlewey, which is a community (not even a village) almost within Glenveagh national park. The views are wild and enchanting. Nature is all around you at Glen Heights - on one side the valley with the lake, on the other you're just at the feet of Mount Errigal.
The b&b itself is very pleasant - while not the most luxurious (it is a b&b, and priced accordingly), it was all we needed; our room was very comfortable and nicely decorated in bright colours, and the whole atmosphere (owing much to Kathleen's own personality) is extremely relaxed and peaceful.
Nice pub food and atmosphere is available at Leo's Tavern (about 10 minutes drive).