Malaga is an okish city in itself, but going there is kinda like going on hols in the uk - just with nicer weather.... There's just too many Brits there, along with too many Germans and too many Scandinavians...
It's ok if you are going there just for sea, sand and partying, but if you are there to experience a different country/culture, my advice is don't go there...
Anyways, if you've already booked tickets or sth, then I would say, try doing something different whilst you're there, like going rock climbing in El Chorro, or taking the trip to Tarifa to do some surfing/kite surfing.. (Obvo if you're interested in that kinda thing...)
Just try getting a lil bit more inland, to see more of the proper Spanish culture... But of course, if it's a booze trip, Malaga is an ok choice...
Dunno much about accommodation, sorry...