We really enjoyed are stay at the Sunset House, it is a older hotel that caters to divers and snorkelers. It is in a wonderful location fairly close to George Town with a beautiful view from the bar. The shoreline has concrete walkways and good access for divers but I would not really recommend it for small children.
Sunset House
Escape the cruise port-of-calls and tourist shuffle of Seven Mile Beach for serenity and the chance to mingle with birds of a feather (i.e. others who love being far below the sea, too) at Sunset House, situated in a predominantly residential area of Grand Cayman Island. Plenty of shore dives are available -- in fact, the resort is consistently praised in the industry as one of the best for shore entry points -- as are boat trips to popular spots like Stingray City. Swimming out to the sunken wreck Mermaid, just 100 feet off the coast from Sunset, is a favorite pastime for divers and snorkelers alike. Other resort features include a swimming pool with waterfall, Jacuzzi, and sea pool cut into the rocky shore, as well as a restaurant and bar should you not feeling like making the 15-minute trek into town. The only downside is there is no beach on the premises; however, with coral reefs resting just feet off of the coast, who needs sand anyway?
Set on a coastal road about 1.2km ( 3/4 miles) south of George Town, this is a well-recommended middle-bracket hotel whose rooms are divided among a quintet of two-story pink-sided outbuildings. Accommodations are simple, no-nonsense, and relatively comfortable. This place is favored by divers and snorkelers, who appreciate the jagged, mostly rock shoreline (site of excellent snorkeling possibilities) and the extensive diving programs. You're given a number of options for accommodations here, ranging from the cheapest -- a unit opening onto the courtyard -- to the most expensive -- a roomy apartment that contains extras such as private balconies, two double beds, a full kitchen, and a living room (this option is ideal for families or groups of four or more who like to do their own cooking). The midrange standard bedrooms open onto views of the sea and contain more space than the courtyard units. Or a spacious suite with sofa and two queen size beds.
Don't expect to swim here off sand: You must lower yourself via ladders directly into the sea. Two good reasons for staying here are direct access to the hotel's much-praised restaurant, SeaHarvest, and its sprawling bar, My Bar, which is especially busy every Friday night. About 80% of the guests staying at the hotel here are scuba enthusiasts; and about 80% of the clients at the hotel's bar and restaurant are full-time island residents.
Facilities: Restaurant; Bar; Outdoor Pool; Jacuzzi; Award Winning Sunset Divers Dive Operation; 5 custom dive boats; Cathy Church's Underwater Photo Gallery