Emerson Spice Hotel
Located right in the center of the maze of alleyways that make up Stone Town, this historic building has been converted into a hotel with wonderfully whimsical rooms, each with a different theme. Each room is massive, and most have balconies with views out onto the town. Traditional Swahili furniture, stained glass window detailing, ornate drapes, and high mosquito-draped four-poster beds (that you need a step to climb into) complete the romantic Zanzibari feel. There's a downstairs café and an excellent rooftop restaurant. Note that taxis can't drive right up to the hotel, so get your driver to walk the final stage with you.