If you looking for alternative to the expensive hotels, try apartments or guest houses in Dubrovnik. I stayed 6 nights at Apartments Irena Dubrovnik. The location was fantastic! The accommodations were on Lapad Peninsula about a 15 minute bus ride from the Old Town. The bus stop was less than a 5 minute walk. There was a supermarket, bank, post office located less than a street block away. The boardwalk (pedestrian walkway) was very short walk away with a information center, restaurants, souvenir shops and beaches. Getting to water was only about 10 minute walk. The views were postcard material!
The room was located on the second floor with a separate entrance. It was a large room with two single beds, a/c, and a bathroom and fridge located outside the room door. The bathroom/shower is shared with one other room. The place was clean and quiet. The owners Maro and Irena spoke excellent English. They are very proud of their place and take good care of their guests. Maro is willing to give his guests rides to the ferry and bus station if requested.
Highly recommend taking the ferry out to the islands in Dubrovnik. The boat ride is scenic and the islands and beaches are beautiful without the masses of tourists you find in the Old Town. Tip, it's much less expensive going to the marina and picking up a ferry to the Elafiti Islands. Try the restaurants in Dubrovnik, prices vary, but the food was amazing in the Old Town. Enjoy.