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I can't really tell you much about hotels, as I don't often stay in them. Hopefully somebody else can chime in.
As for some of the sights:
Stanley Park (a nice walk along the sea-wall takes a few hours)
Grouse Mountain (On the north shore... perhaps take a bus over there. Take the tram to the top of the mountain for some of the most spectacular views of the city)
Granville Island (A Market with alot of artist boutiques. Head to a restaurant on the water - like the Bridges patio - for lunch or dinner)
I'm sure there are alot of other ideas I'm missing... Feel free to PM me if I can be of any help.
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Silver '88 RoW Carrera
Grey '06 A4 Avant
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