We recommend sticking to upscale hotels in Caracas. For safety reasons, avoid accommodations located on the west side, in the city center and especially in the Sabana Grande area (it's not safe at night and only slightly safer during the day).
The best hotels are on the east side, some in posh neighborhoods, but even so, you can find affordable accommodations. They offer a full range of services for business and leisure travelers. Since Caracas is primarily a business destination, tourists should make every effort to visit during the weekend (especially holiday weekends), when the hotels tend to be empty and offer very attractive discounts and packages to fill rooms. These great deals are usually available only if you book ahead and ask specifically for them (otherwise they charge rack rates).
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