The beaches around downtown will probably be fairly crowded. Luckily the hotel is right on the beach, so you're guaranteed a good spot!
In our opinion the most beautiful beaches are about 30-40 min. west of Traverse City. The Sleeping Bear Dunes lake shores are voted the most beautiful lake shores in the country.
http://www.sleepingbeardunes.com/
We really enjoy the beach at Empire. (just a couple of miles from the Sleeping Bear Dunes) It's fairly secluded and crowds don't seem to build up there.
http://www.empirechamber.com/
There are also some nice beaches about 30 minutes up the Old Mission Peninsula. It's nice to have a look at the lighthouse/view which is just a short drive from the beach or wineries.
http://oldmission.com/
Britton likes to rent stand-up paddle boards. It is a really cool, fairly cheap water activity to do in the Grand Traverse Bay where the waters are pretty calm. We like to rent from the Wet Mitten Surf Shop right on Front St. in downtown Traverse City. They will deliver and pick up the boards & paddles. A full day rental is 55.00.
http://www.wetmittensurfshop.com/
