I agree you don't need a car in Halifax as the downtown including the Harbour area are quite compact and walkable.

In Cape Breton, The three main "service" towns (all on the Cabot Trail) are Baddeck, Cheticamp and Ingonish. All are quite small with Cheticamp, the largest, having a population of about 4,000. You could actually tour/day-trip the whole Cabot Trail and much of Cape Breton from any one of these, but splitting up your stay or staying in one of the smaller villages you mentioned is fine too (dining choices and shopping generally become more limited in the smaller locales and/or off the main Cabot Trail).

All 3 of these towns are "tourist" centres, but I think Baddeck still has charm and some nice shops, and I wouldn't call it overcrowded. It has a pretty setting on Bras d'Or Lake and offers upscale inns, B&B's, art shops, yacht harbour, and a selection of dining choices would be within walking distance if you pick a centrally located accommodation.

The Ingonish area where Lantern Hill and Keltic Lodge are located is a string of little communities with several resorts, some cottages, and a few restaurants scattered along several miles of shore, lots of nice coastal scenery, a seaside-vacation feel.

Cape Breton Highlands National Park is a huge area at the top of Cape Breton with many hiking trails. Both Keltic Lodge and Lantern Hill are more or less adjacent to the east entrance. There is one specific and very nice trail - Middle Head Peninsula - that is right beside Keltic Lodge, But I wouldn't pick this accommodation solely for that reason.

Cheticamp is an Acadian fishing village and I think it has rustic charm, but it's also a rather bustling tourist town (maybe too much so for your tastes). A stay here does offer the advantage of several restaurants being within walking distance (although Baddeck is probably better in that respect). It is adjacent to the rugged soaring headlands section of Cape Breton Highlands National Park and closer to another of the most popular trails - Skyline.

This link might be useful: http://www.pc.gc.ca/eng/pn-np/ns/cbreton/activ/randonnee-hiking.aspx

I have visited Cape Breton 4 times in recent years and have the following recommendations. I would spend 2 nights in the Mabou area at the B&B Inn at Glendyer which I have recommended to others in the past. The area offers hiking and Celtic music. I would likewise spend probably 2 nights in Cheticamp. You can visit the rug hooking museum there (Les Trois Pignon) and hike the Skyline Trail in the near end of the Highlands Park. If lucky, you'll see a moose or 2. I would then continue on for a couple of nights in Baddeck. There is music and hiking nearby as well as the Alexander Graham Bell Museum. It's also central to a number of other villages for a day trip. I would not consider any of these towns "too touristy" such as like Banff for instance. They are relatively small and quite walkable and I would say old fashioned; and you should be able to find reasonable accommodations throughtout ( I prefer B&Bs myself).

For a Canadian experience, make sure you stop by the Tim Horton's in the evening in Cheticamp to see where the locals hang out for coffee and talk. Also, give the Lay's pickle potato chips a try; they're quite tasty. By the way, a friend visited the Glenora distillery and thought it wasn't worth the cost.

Thank you both for your replies, your input was very helpful. So far, I have reserved our first two nights at the Prince George Hotel in Halifax and the next two nights at Dunncreigan Country Inn in Mabou. We wanted to be able to walk to the Red Shoe Pub and also desired a King bed like we're used to at home.

So now we are deciding how to split up the rest of the trip (four more nights on Cape Breton then our last night at a hotel by the airport in Halifax).

In reading traveler comments about Cheticamp, people seem to either love it or hate it. Either way, I can't seem to find much in the way of accommodations there?

Since we are interested in taking hikes in the National Park in addition to driving the Cabot Trail by car, I'm wondering if Baddeck is a bit too far from the Park? I used a mileage calculator and it said Baddeck was 101 km (64 miles) from Ingonish. Driving an hour to get to the National Park trails is more than we want. Or perhaps there is other good hiking near Baddeck? Reading about Baddeck, it sounds lovely but mostly lake activities are mentioned such as boat trips. We are more interested in hiking and being by the ocean, since we live in the Midwest away from the ocean.

For those reasons, I'm wondering if we should just spend all 4 nights in Ingonish after we leave Mabou? Or maybe 2 in Ingonish and 2 in Baddeck. Baddeck would get us closer to Halifax at the end of the trip, although I think the trip calculator must be wrong because it tells me Ingonish to Halifax is 726 km (451 miles). That can't be right if Ingonish and Baddeck are only 101 km (64 miles) apart and Baddeck is 357 km (222 miles) from Halifax?!

When we hiked the Skyline Trial (which I recommend), it is most convenient to stay in Cheticamp as the trail is at that end of the Park. We found one day hiking the trail and then driving to Baddeck the next day worked well. In my opinion, driving through the park with occasional stops can be done easily on the way to Baddeck after that hike.

I forgot to mention, but I believe there are boat excursions from the Cheticamp harbour as well. Also, check out what others say.

http://www.tripadvisor.com/Attraction_Review-g154972-d186151-Reviews-Cheticamp-Cape_Breton_Island_Nova_Scotia.html

Thanks Shsch, it looks great. Any hotel recommendations for Cheticamp?

My final itinerary includes two nights Halifax as posted above, two nights Mabou, followed by two nights at the Pilot Whale Chalet in Cheticamp, then two nights at the Keltic Lodge Ingonish. Last night at hotel right by Halifax Airport. Very excited! Thanks for your help!