My favorite is Tembo House on the waterfront. It's easy to walk everywhere from this location, including Forodhani Gardens or down Kenyatta St. where there are a lot of shops (my favorite: Memories of Zanzibar for just about anything.) Right around the corner is Monsoon Restaurant, another favorite of mine. It's on the outside of the tunnel on the way to Forodhani Gardens. In the evenings, the locals come out to the Gardens to eat or shop.

http://www.kingsafrica.com/jafferji_house_and_spa.html

my favorite. Are you heading to the beach after ?

Another good cheaper hotel is the Dhow Palace, right within walking distance of everything.

Thanks you guys, this is helpful. Going to the beach after. Twisted Palms. : )

My list is:

1 Serena Hotel

2. Tembo Hotel

3. Dhow Palace Hotel

these are all within 2-3 blocks of each other

Serena is right on the main beach corner ( I stayed here)

The others are nice also.

Tembo and Dhow both good and priced right. They're sister hotels, the former on the beach, the latter a few blocks further in. Note though, following Muslim tradition they do not serve liquor but will provide set-ups if you provide your own. There are shops nearby where you can purchase.

Or you can walk down to the Serena for sundowners. They have a nice terrace and great views of the sunset. Dhows are usually sailing by... great photo ops.

Hi Lenlu,

Stay in the heart of Old Stone Town in the Zanzibar Coffee House Hotel, safe, convenient, fun, inexspensive and with perfect location for your purposes, and the terrace with a great view of the town. I have recommended to many of my clients and they loved the location, the friendly staff and the views!!

http://www.riftvalley-zanzibar.com/zch_index.html

I have booked at the Jaffer house in Stowtown