Our intrepid editor, Jen Leo, is in Europe as we speak.  A while ago she posted this story on Prague.

I think she is going to be in Prauge this month, she will probably have much more to say about cool places to stay after she visits.

Also:  HK hotels, a hotelier whom I have stayed with in NYC (nice places), have a 5 star boutique in the Little Quarter (Mala Strana) of Prague.  Might be pricey, but it looks like a sweet themed hotel.  Check it out.

I was in Prague for a spring break during College. Now, I was a broke college student travelling with two girlfriends, so you might need to take what I say with a grain of salt...When you get off the train in Prague, you were (when I was there 8 years ago) bombarded by people trying to rent you a room in their home or an entire apartment. It seemed a little shady, but we found a gold mine! We stayed with this geeky programmer, who's hair ressembled Albert Einstein's and who loved "bubbly," and his "manager" a Belgian who learned to speak English in Georgia (of all places). We were there for about 5 days, drinking "bubbly," picking up Southern slang and going to dance clubs. It was great and it was CHEAP. If you're a little adventurous, this is a great way to go because you get a taste of what life is like for a citizen of Prague.

My husband and I stayed in Prague in September of 2002--just after the terrible flood.  We were originally booked into the Pension Dientzenhofer in Mala Strana (www.dientzenhofer.cz) but it was forced to close for renovations; it has reopened, and having walked past it and fallen in love with Mala Strana (the Lesser Quarter) we would stay there without hesitation on a return trip.  Our substitute accommodation, Dum U Tri Bubnu (at the House of the Three Drums) was in the Old Town, near the Kafka House and the Old Town Square.  We were traveling with a friend, so booked the incredibly spacious attic suite.  You can see this hotel and many other properties at: www.hotelsprague.cz

Other places on that site that we thought well-located in the Old Town Square area were the Residence Retezova and the Pension Apostolic--the latter right near the great astronomical clock, so could be noisy in the crowded streets below at times.  You will find all the main sites very walkable from the Old Town or Mala Strana, plus public transportation is easy to use to get around.  Have a great time.  For a marvelous romantic dinner in Mala Strana, go to David. (website: http://www.restaurant-david.cz)