Everybody must do the Peabody at least once in their life. It's a genuine five-star hotel filled with Southern hospitality. They will make you feel like royalty. It's expensive so be prepared to pay. The cheapest room runs around $200 a night. It has several restaurants in and around it, but the highlight of the Peabody is its flock of ducks. Every day the flock passes through the lobby to the delight of the guests and onlookers. Hundreds of people gather to watch this tradition.
The Holiday Inn/Downtown is a less expensive option for lodging in downtown Memphis. It's right across the street from the Peabody, but rooms go for about $100 a night (or less if you have discounts). The parking is complementary, they have a restaurant in the basement, and they have nice, clean rooms.