Naturally, one of the first questions that any traveler, looking at any possible destination, would ask would be: "where should I stay?"
Happily, in Stone Town there are many options. The picture above is of the central courtyard of the Dhow Palace Hotel in Stone Town. The Dhow Palace has many advantages: it's right downtown, has lovely rooms, features a beautiful pool (greatly appreciated on those especially hot equatorial days), and also has a restaurant and bar. It's our first choice for this summer's trip, but there are other great options as well.
On Pemba, not surprisingly because it is the "quieter" island, has less options, although the Sea View Hotel and the Pemba Modern Hotel are perfectly fine.
On both Pemba and Unguja (where Stone Town is located) there are also the gated community options further afield, but they would certainly not be our first choice (or second or third). They're lovely and quiet, but if your goal is to immerse yourself in community and culture we would suggest staying downtown in either Stone Town or Chake Chake.