Qingdao boasts a number of great four and five star hotels along the waterfront. The farther away you get from the beach and great views, the cheaper the accommodations become, but Qingdao doesn't have as good a selection of budget options as many Chinese cities of its size.
A busy place all summer long (May through September) and during the beer festival, it's best to book Qingdao hotels early and give yourself plenty of time to look for good deals. On the other hand, the low-season winter months see high vacancy rates and you can usually get excellent deals. Ctrip.com books a wide range of Qingdao's best deals.