My father used to say the same to my DD who he very much loved. She was his little beauty, and he thought she was beautiful. I saw it as the term of endearment that it obviously was. I think it's ridiculous nowadays how people are always taking things the wrong way. It'll soon come to the point when we never speak to anyone for fear of offending, or whatever we say is taken the wrong way. Of course, it all depends on the context in which it's said, and if he's a sleezy old man, and you have concerns about him in any way, then that's a different matter ...