What area of San Diego is the best location for a hotel for a vacation ?

Check out Coronado. It's just across the bay from San Diego and is connected by a bridge. It's beautiful and relatively safe. You can use the Old Town Trolley tour to do some sight seeing - they depart from the Hotel Del Coronado and visit many points of interest throughout San Diego. You can get on and off the trolleys all day. I stayed at the El Cordova Hotel and was very happy with it. The "island" (it isn't really an island, but people call it that) is small enough to walk the length easily.
 
Stay in La Jolla, just a few miles north of San Diego. It is quiet and safe, with many good restaurants. Stay here if you intend to be driving, but not if you're not driving.
 
Coronado is nice. I love that area around there. The bridge is pretty cool, when I was there I could see all the Navy warships in the harbor...WAY COOL. If you travel along the silver strands you can see soldiers/Marines/Navy Seals training. I'd love to move there, but unfortunately it costs an arm and a leg.
 
If you have a family, Mission Bay is a great location. I would recommend the Catamaran Resort and Spa. There's a tower there that offers views you can't get anywhere else in San Diego. You can see downtown, the Coronado Bridge and even Mexico from the higher floors.
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