For hotels try Casa Kirch and Casa Verado, both run by the same people, the verado is more trad in feel, kirch is more moderne.
We stayed at the Verado,
Comfortable, sylish and no frill at the same time. The Verado is close to the action, a short walk from all the main attractions but away from the noise and clutter. Its in a stunning, peaceful spot, they eye in the storm really
http://www.casakirsch.com
http://www.casaverardo.it/home-hotel.php?lang=ENG
Venice is astonishing. Its expensive, but don't expect to go shopping. Walk, eat,walk, drink walk walk walk walk. Its beautiful but its dead theres no real life there and no real shops (well theres lots of shops but for the most part they are just interesting to look at, not interesting to buy from). So you only really spend your money on refreshments.