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Hotels in Venice are predictably expensive, although some of the smaller hotels will offer more reasonable room rates.  Cheap hotels in Venice are few and far between but are more common near the Lido (rather than in actual Venice), a nearby island that has a long beach and is popular amongst tourists and locals alike.  There are plenty of luxury hotels on offer, including one that is located on its very own island. Transfers by waterbus to Venice are quick and easy.

 There are plenty of luxury hotels on offer, including one that is located on its very own island... 

Venice hotels do provide for all tastes and budgets, even though 'budget' will be relative.  Hotels are numerous, and range from simple rooms to inordinately extravagant and opulent suites.  Stay near the airport if you plan to hire a car and explore the surrounding areas, or in Mestre, the mainland part of Venice.  If, however, you are intending to see Venice itself, then it really is necessary to find an hotel in the city centre; in the San Marco area if you are short on time and want to see as much as possible; or in Dorsoduro and near the Rialto if it is bars and nightlife you are keen on.  Otherwise, Cannaregio and Castello offer an authentic Venetian experience in somewhat quieter locales.