I havent stayed here... but.. this may not be the type of place your lookin for. Its right on the main Drag thru town. There is construction going on right now... and although it may be JUST the place that your looking for....its not a place I would spend that kind of money to stay at.
It is across the street from Ritter Library and 1 block from Rudys Bar.. [Very friendly place..its where the town folk all go].. It is a 8 min walk to the French Rest. and a 15 min walk to Red Clay On the River- [another popular resturant] Its a 3 min walk to the Heart of Downtown Harbortown Vermilion.
Its not my place to persuade folks as to where to stay but try http://www.gilchristhouse.com/
It has all of the Good stuff that the other place has...plus its right on the lake shore, and its a 2 min walk to the French Restaurant a 1 min walk to the Great Lakes museum and Main Street Beach.