These are best places to stay in Santa Cruz, in all price levels.
If you prefer a small place to stay with a homier feel, these are the best bed and breakfast inns in town.
Capitola, Aptos and Scotts Valley are all close to Santa Cruz, and all of them have some nice hotels that are a little more out of the busy center of town.
A practical, non-commercial guide to finding a nice play to stay while paying a reasonable price
If you're looking for more than a hotel room or B&B for a long weekend or want to stay for a week or more, you'll find lots of lovely vacation rentals at this source.