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Seeking suggestions for places to stay in Bermuda (or alternatives)

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Hello. We are planning to travel to Bermuda in the late summer/early fall for a week. We've never been. There are six of us (maybe five if my son can't come). My wife and I are in our 50s and we'd be traveling with our 3 adult kids (ages 20-25, and my daughter's boyfriend). We would definitely like to chill on the beach or at a pool, with occasional site-seeing/shopping visits. One thing we'd like to do (I've never done) is go scuba diving. We are not into the night life (parties, clubs, etc.). We like nature (hence the motivation to go scuba diving), historic sites, and maybe some art. My daughter's boyfriend is an architect, so he would want to look at interesting architecture if available. We'd probably be 40% on the beach, 40% shopping/day trips/whatever, and 20% eating/hanging out at our room/cottage/whatever.

I would like advice on where to stay. We'd definitely want to be on the beach or very near the beach for convenience. However, I am not convinced a "resort" would be the best way to go due to the high cost. What would be perfect for us is to rent a small cottage from a local or maybe a modest resort/hotel complex. I would like to keep the lodging to $2,000-$2,500 if possible. I took a look at homeaway.com, and found a few places, but most of them appeared to be resort advertisements or small condo's (2 occupants).

We have not ruled out a resort. I just felt a resort would be geared toward more active vacationers and we tend to be pretty chill on our vacations. We also have not ruled out other venues. We are in the Washington DC area, so Bermuda is reach-able at reasonable air fares. I assume the scuba diving would be good and there are enough historic/interesting places to go there, but am not sure.

Any help would be appreciated. Thank you in advance.

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    Bermuda is the ideal destination for you. It is a small island with an excellent public transportation system so it is very easy to stay out at the beach and still get into the towns for shopping and dining.
    For rentals you might want to consider www.bermudagetaway.com or www.bermudarentals.com There are many listings there which should give you a good choice. The price point is very appealing since Bermuda can be an expensive destination.
    I highly recommend going to www.gotobermuda.com and get on their mailing list for specials and deals. Also check the very active discussion forum on tripadvisor.com
    Of the resorts on the beach, Pompano is family friendly, no nightlife, but good food and great views. Their cottages are quite comfortable, but casual. A bit more upscale is The Reefs. Off the beach but a very short walk is CLairfont apartments, which is a highly recommended budget accommodation.
    Most of the restaurants, bars, shops are in Hamilton. It can be reached by ferry or bus from any part of the island.
    I am a scuba diver and have been diving with Blue Water Sports at Somerset bridge for years. They run a good safe operation. I encourage you to become certified before you go. Bermuda is not a fabulous fish or reef diving location but it has some excellent Civil War wrecks worth your time. It is a great place for your first blue water dive because the vis is so good.
    Bermudians are good stewards of their history. Visit Dockyards, the forts (several on the island) and enjoy Bermuda's unique place in history. Certainly plan at least one visit to the Town of St. Georges, which has some lovely historical buildings.
    I hope you enjoy your visit. Bermuda is another world.

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