Charlottetown Backpackers Inn
Only hostel in Charlottetown. Single-sex dorms, co-ed dorms, and private rooms available. Free wifi and internet terminals. Open April to October.
Elmwood Heritage Inn
(http://www.elmwoodinn.pe.ca/) was the first 5-star bed&breakfast in charlottetown and is still one of the best. innkeepers jay and carol are known to be some of the most helpful.
The Great George
(http://www.thegreatgeorge.com/) charlottetown's historic boutique hotel. probably the best location in all of charlottetown. it is getting pricier over time, but it is probably still one of the best overall values in town. it is right in the middle of it all.
Fitzroy Hall
(http://www.fitzroyhall.com/) is another well located bed& beakfast and is typically well maintained. the shipwright inn (http://www.shipwrightinn.com/) is right next door and is highly rated, and the dundee arms (http://www.dundeearms.com/) is right across the street and is an inn with an attached motel. the dundee has a nice pub frequented by locals.
There is no reason to stay at a chain hotel or motel in Charlottetown. The city is dotted with some of the cutest, and most comfortable, Inns and B&Bs you can imagine. All offer fantastic service and most have locations that allow you to walk downtown. They will often be cheaper and offer much more comfortable accommodations than a hotel. These places live and die by their reputation, so most innkeepers are incredibly helpful.