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My vote would be to stay in the old town of Ragusa Ibla.
There are great rates at the Hotel Il Barocco at Via Santa Maria La Nuova 1 (tel. +39-0932-663-105, www.ilbarocco.it, » book online from €59), with old fashioned-styled furnishings in an 19th century building.
The boutique San Giorgio Palace Hotel offers modern, designer rooms at Via Torrenuova 50 (tel. +39-0932-686-983, » book online from €62), around the corner from the cathedral.
At the lovely Locanda Don Serafino Romantik Hotel at Via XI Febbraio 15 (tel. +39-0932-220-065; www.locandadonserafino.it; » book online from €99) make sure you book a junior suite to get one of the choice rooms with stone walls (the other rooms are fine as well; they just don't come with as much antique atmosphere). They also have a restaurant—and a private beach at their second, beachside Lido Azzurro restaurant in Marina di Ragusa, 20km (12 miles) away.
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