You could not find a better location to stay in Stonetown other than that of Beyt Al Chai.
The six rooms B & B that used to be an old Arab Tea Trading House is located on a small square and shaded by magnificent trees and directly across from the small luxury Zanzibar Serena Hotel.
The rooms are well appointed with plenty of space and (very important) air conditioned.
We were in the room named "Beyt al Chai" and this looked out on Kilele Square.
Everything was within walking distance and made for easy moving around despite the humidity.
I would recommend walking to
Forodhoni Park in the evening (about 4 - 5 minutes) and there you can feast to
your hearts content on barbecued food of every variety.
Eating at the Beyt al Chai was okay. Breakfast was a hit or miss affair and we had lunc one time which was fine - nothing exceptional.
Definitely a great place to stay, but go further afield to eat.