Try asking the same question on this website and you'll get alot of help!
http://www.traveltalkonline.com/forums/p...
Definitely the Seven Mile Beach area. Thats where the majority of the hotels, shopping and nightlife is located. Recommended Ritz Carlton, Hyatt and Westin Casuarina Resort (amazing Sunday brunch). Comfort Suites, Treasure Island are a bit cheaper and nice as well.
Almost any place along Seven Mile Beach is close to recreation/shopping/dining as that's the tourist area (like the whole island isn't--it's just more concentrated along that beach). Almost any place along Seven Mile Beach is a good hotel, resort or condo. When quoting prices, make sure of what currency is bing used. The Cayman dollars is about US$1.20 so you may be paying 20% more then anticipated if you are not careful.
Any hotel/resort at the southern end of Seven Mile Beach will be ideal for you. You'll be able to walk into Georgetown from there, and most will be able to arrange for tour transportation to the Turtle Farm (northern part of island) and other points of interest (eastern portion of island).
I stayed at Treasure Island and loved it...it's at the southern end of Seven Mile Beach, and is within walking distance to several restaurants, shops & Georgetown (which has even more dining and shopping).
http://www.resideo.com/ky/grandcayman/99...
At the northern end of the island, near the Turtle Farm, is Cobalt Coast. Amazing place, awesome rooms...I was lucky to stay 1 night there several years ago. There's an on-site dive shop.
http://www.resideo.com/ky/georgetown/753...
Have fun...Hope that helps!