As Ellie meg says, it depends what you want. Fethiye is not the best resort in the area but funnily enough we have chosen to go there this year, to The Letoonia Club resort which is an All inclusive hotel just outside the town. We love Olu Deniz but after going there for 6 years running, felt we needed a change. We do love Fethiye though, we spend a week on a gulet most years,which starts and ends in Fethiye so we have gotten to know it quite well. Some of its not to be missed things are:
The Fish market restaurants, where you can chose and buy your fish and then take it to one of the restaurants that surround the market square and they will cook it for you for the price of the accompanyments. Go early evening and the astomsphere is fabulous, fairy lights in the trees and musicians to accompany your meal.
The car cemetry bar (in the old town area). Here its great to sit outside and watch people walking past. They sometimes have live music and later thumping disco music.
The ampitheatre ruins, right by the harbour and free to walk around.
You can get a ferry to Calis beach several times a day. Not a great beach but its a beach.
Your can get a bus to Hisaronu and also Olu Deniz. Takes about 35 - 40 minutes. There are lots of buses all day and night. You can spend the whole day there.
Hope you enjoy it,
We thought about staying at this hotel
http://www.yachtplazahotel.com/index.htm
PS Just had a look at Ibrehim Bey Hotel. Its sounds nice but its quite a way outside Fethiye town, its actually more Calis Beach, but it does have good reviews.