Edinburgh on the 2nd September has the Fireworks concert which is a rather popular event. At a guess you won't have much choice at this late date and prices for what is available will be high. You may also find that you have to book for Friday, Saturday and Sunday night.

http://www.eif.co.uk/virginmoneyfireworks-gardens

We stayed at the Raddison on the Royal Mile in Edinburgh. A very nice hotel and the location could not have been better. On Skye, we stayed at the Viewfield House in Portree and really enjoyed our stay. It is a large guesthouse/small hotel with nice rooms, common area for afternoon tea or drinks, and great full Scottish breakfast. When on Skye, have a meal (I am thinking lunch for ease of getting there during the day and views) at Three Chimneys. It is truly sensational.

I have stayed at the Radisson in Edinburgh as well. The rooms are a little dark but clean and the location is good. The breakfast they served was better than at the Apex Waterloo.

While on Skye we stayed at the Rosedale hotel. I am not sure how much it was because we were on a tour. We had a view of the harbour which was spectacular and a nice treat. The breakfast was good and the staff were friendly.

We didn't know about the fireworks, but are thrilled that we will have an opportunity to see them! Maybe from a distance, but still...

I have stayed at the Mount Royal Hotel, right on Princes St. with a great view of the old town. Ask for a view room.

I've stayed at other places, including the Caledonian, but this is my favorite hotel.

Check it out, it's currently owned by Mercure.

Either walk up to Edinburgh Casle, or take a short taxi ride there. The Royal Mile is all downhill, and it's a short walk from the Holyrood, which is at the end, down to the hotel.

If you ever saw Robert Donat and Madeleine Carroll in The 39 Steps, you can check out the Firth of Forth.

Have some haggis, which is offal (bad pun).

I recommend staying at a hotel on the Royal Mile in edinburgh. We stayed at the Carlton:

http://www.pumahotels.co.uk/hotels/scotland/barcelo-edinburgh-carlton-hotel/rooms

This was kind of in the middle between the two castles and there is a lot going on near the royal mile.

We stayed at this lovely B&B, Elderfields Guesthouse, that was only a 10 min. walk straight up the street to the Royal Mile. Loved it and the hostess, Maureen was so charming and helpful. Our room looked directly out onto Arthurs Seat. Prices are reasonable and you get a decent breakfast every morning. Public transportation was also just a 5 min. walk away.

http://www.guest-houses-edinburgh.com/edinburgh_history.php

Bookmarking

If you haven't booked, the Apexes in the Grassmarket are worth a look as well. As are the Scotsman- which is on the other side of the road from the Carlton- and the Macdonald Holyrood.

On Skye, I'd stay at the Sligachan for location, and the Eilean Iarmain because I love it. Generally, I'd give Portree a by. Not that there's anything wrong with it. I just prefer the countryside.