Can recommend the Tower Hotel in Derry! Just of the main square in the walled city. Couple of decent drinking establishments close bt as well.
Yes, and it's also nice and close to Waterloo place, the local head kicking arena. City Hotel is nicer, and not as awkward to get to. I just wouldnt stay in Derry tbh.
EDIT: I've just read that you're staying in Derry for the night, if it's a weekend night keep your wits about you, try and get to and from wherever you're going before the local niteclubs kick out, dont hang around waterploo place and dont walk on the walls at night for a short cut.
You'll love Donegal btw.
But on the other hand, a bit of awareness and attention to sensitivities of the locals will stand you in good stead; and that would apply wherever in the world you travelled.
Tower Hotel has got a good 2 nights b&b deal, so BOOKED.
So current plan is round the coast for day 1.
and Donegal for day 2. Is that where Craggy Island is?
No, exteriors for craggy island were shot in Co. Clare I believe, but Tory Island off the Donegal coast is as close as you can actually get in real life. Most people still speak as Gaeilge over there, the pubs/ceile's stay open all night if you are lucky. Mental place and well worth a visit.