Sorry! Just saw this!
When we go for a week, we normally stay in a condo.
When we've stopped in St. Augustine on our way to or from WDW, we stay in the Hampton on the beach. It's on the beachside (so you don't have to cross the street to walk to the beach), & the rooms have balconies overlooking the beach. The Hampton also offers a nice complimentary breakfast, &, if you're heading out for the day, you can grab a "breakfast bag" to go (water, muffin, piece of fruit). From the Hampton, the drive back into the historical district is only about 10 minutes.
We've also stayed at The Beacher's Lodge which is further down the beach - the rooms are suites w/ kitchenettes which is nice.
One of the nice things about St. Augustine Beach is that there is a height restriction for the hotels & condominiums on the beach, so none of the complexes are really tall & view-obstructive.
In town, there is another Hampton (along w/ other hotels & inns, of course) & some lovely bed & breakfasts. My sister likes the Monterrey Inn which is on the bay.
Staying in town puts you within walking distance of some wonderful restaurants, St. George Street, shopping, & many of the historical attractions; however, you'd have to drive to the beach. We normally stay on the beach & drive into town.