I've stayed at the Lake Trail for both family and business visits to Oscoda. For the price, this is a really great deal. We've always found the rooms, even though some are a bit dated, to be clean and well maintained. The hotel does not pretend to be fancy, just simple and clean. There's a great beach, too. We recently stayed over New Year's Eve and found that it was very quiet.
For us, the location is ideal. Close to relatives, grocery store, church and right on the lake. You're not far from movie theater and other shops downtown.
Our room did not smell of smoke (non smokers and very sensitive to smoking smell) but did notice that there were some areas of the outer screened in hallway that did smell like smoke. It did not permeate our room and didn't bother us.
We always stay here when making quick trips to visit family and friends in Oscoda and will come back again.