First....I grew up in Santa Cruz, so this review will hopefully be helpful to other visitors.
This is a great central location with-in walking distance of the Pacific Garden Mall.
Loads of great shopping of all kinds. There is a great kitchen store, bookstore (Santa Cruz Book Shop) and the Sock Shop which is full of great socks.
The food is great too, the Santa Cruz Bagelry is a must, Pizza My Heart, Zachary’s, the Pacific Cookie Company and the Santa Cruz Coffee Roasting Co.
As for entertainment there is plenty of night life for those searching for this but..... you will need to be respectful of quiet hours while staying here. That said, the Catalyst is a fairly famous music venue. I’ve seen George Thoroughgood, John Lee Hooker and Modest Mouse there. There is a candle making store and pottery glazing venue and just around the bend is the Santa Cruz Beach Boardwalk where you can ride the Giant Dipper one of the oldest functioning wooden Rollercoasters around! If you have time checkout Capitola and Monterey too.