Budget
Sheki Hotel
The tallest building in Sheki is actually a quite rotten place to stay. Rooms are in extreme disrepair and the service is as Soviet as it gets. At least the hotel does offer a guide service in five languages English, Azeri, Russian, German, and French and guests can take advantage of the 30 seat hotel bus.
Azer Petrol Hotel
This is a stop for truck drivers going and coming from Turkey, Tbilisi, and Baku. A small breakfast is included in the price of the hotel. Travelers should avoid this one, since there is no transportation to the city center.
Shail Pansinot
This is a hotel of second-to-last resort after the dismal Sheki Hotel. As you would expect, there is no "beach side" to the city of Sheki, as there is no beach. Its location near the bazaar is the best thing about the hotel, but the rooms are a bit drafty and are not so big. Another advantage is that it is quite cheap for the basic rooms. Finally, there is a small restaurant on the first floor of the hotel.
Top end
Sheki Saray Hotel
The latest hotel in the city, also the most expensive as it caters to wealthy Azerbaijanis from Baku and Ganja as well as Westerners the staff speaks English and Russian. It has many amenities previously unseen outside of Baku such as in-room Internet access via ethernet, taxi service, room service, etc. There is a conference room on the first floor, a bar with coffee/alcohol, and a restaurant. Rooms range from the basic single to the Presidential Suite.
Naran Qala Istrahat Zonasi
This is a cottage complex with over 20 different 1-4 room cottages. In each cottage there are bathrooms, kitchens, and satellite TV. The facilities outside the cottages include a playground for children, evening shows, and a restaurant where children up to 8 years of age can eat for free. This resting zone is within walking distance of Kish's Albanian temple, Markhal, and the old fortress ruins of Gelersen Goresen.
Sheki Idman Kompleksi
The well-groomed sports center complexes, complete with beautiful gardens, that are being built throughout the country are one of the current president's pet projects. The Sheki Olympic Complex is a little ways out of the town and getting there involves a marshrutka or taxi ride. The sports areas are available to visitors—for a price of course—including volleyball, basketball, tennis, and football. The facility has a conference room for 50 people, a dining room, and small cottages.
You can sleep for pennies in Sheki if you stay in one of the budget options, but keep in mind you get what you pay for. The lowest-grade options can have rooms with broken toilets, rude staff, etc, in addition to just being ugly. The most obvious overnight location is the Caravansarai hotel, which is reasonably priced and beautiful. Less obvious, but perhaps even more rewarding for visitors who speak Russian or Azeri are the home stays.
Sheki B&B Association
+994 050 612 6564. this is the least expensive option for staying in sheki while it is also a great opportunity for interacting with locals. farhad azizov is the head of the association; however, he speaks no english so have your russian or azeri ready.
Panorama Inn
Run by a middle-aged couple, has a nice view of the whole community of Sheki and nice, albeit pricy for Azerbaijan meals. 5 bedrooms for two people apiece, each decorated with Azerbaijani handicrafts and tools.