Question Best Lodging Options in Stockholm

I'm heading to Stockholm for the Rick Steves tour in May 2016, and I’ll be arriving a day early. I just found out that there are so many options for lodging, and it's a bit overwhelming. Should I go for a hotel in the city center, or are there good hostels or Airbnb options that provide a unique experience? Any recommendations for places that are convenient for sightseeing? Thanks for your help!