minnette,
The Reefs Club is a very nice hotel. The month of January is off off season. The cheapest room is poolside which is 284 per night and includes a full american breakfast, afternoon tea, and dinner. We loved this quiet hotel. You will get a true Bermudian feel here. You can also catch a bus to town at the entrance. We stayed poolside (if stairs are okay for you-take the upper pool-side rooms.) We found these to have a great view and were quiet enough. This is a hotel that has very few children there and would probably be half empty this time of year. I am not sure of the temperatures or weather in Jan.

minnette,
I would think St. George's would be a good choice - it is very quaint and charming. You can rent an apartment for $100 a day and be within walking distance of everything - restaurants, shopping, a grocery store and more. Go to www.bermudagetaway.com and click on the east end for Crooked Elbow and Taylor House for pictures and info. I have never heard of complaints at either of these.