It would be quite hard to answer such a question, Prague is a town of diversity and a lot of charm, each district has its own character and appeals for a different kind of tourists. But here we will try to categorize each area of Prague:

Prague New Town and the Wenceslas Square

This is the modern part of Prague, the most crowded and usually frequented by young tourists, and preferred for its animated streets, its pubs, restaurants and shopping malls. The heart of this modern part of Prague is the Wenceslas Square, the main avenue of the city, named after Saint Wenceslas, the patron saint of Bohemia who is known in the rest of Europe as King Wenceslas. The Wenceslas Square is dominated bu the National Musem uphill and the the statue of Wenceslas in front of the Museum building. Both busiest Metro stations, Muzeum and Mustek have access to the Wenceslas Square also as several tram lines.

The Wenceslas Square is separated from the Old Town by the Na Prikope street, Prague’s fashion boulevard that attracts shopping fans where they can enjoy a large choice of malls, cafes and restaurants.
For staying in this area of Prague, tourists usually choose hotels in the Wenceslas Square and its surroundings, but during last few years a new accommodation trend is growing: serviced apartments for short stay that you can find almost in each street and which you can book in advance online as for example King Wenceslas apartments.

The Old Town of Prague

Staying in this district of Prague is the choice for those seeking more authenticity and history, holiday apartments are in every corner of the Old Town, usually in building with a great architectural style. Hotels are mostly around the main Square and each hotel tells stories from the history of Prague.

Some of the notable places in the Old Town are the Old Town Square with its Astronomical Clock, the Josefov quarter, Charles Bridge and tens of churches, palaces and houses from different architectural Epochs.
The Old Town is also the right place for fine dining, great restaurants and pubs can be discovered in the small hidden streets.

The Lesser Town (Mala Strana) and the Prague Castle area

The Mala Strana is the most romantic choice for staying in Prague, located on the left bank of the Vltava River just below Prague Castle and connected to the Old Town by Charles Bridge. The Lesser Town is the calmest district of Prague (actually my favorite), dominated by a Baroque architectural style that sprays in the air of the Mala Strana an atmosphere of simplicity and serenity.

If compared to the Old Town and the Wenceslas Square, hotels in the Lesser Town are far from being fancy and shiny, smaller buildings and simpler rooms but high standard services. For those who prefer self-catering apartments, they can find even good bargains at a walking distance from Charles bridge, some of the apartments are just studios for couples or large flats suitable for families and groups of friends.

In the Lesser Town, cafes and restaurants usually have affordable prices if compared to the luxurious New and Old Town, so staying in the Mala Strana can be suitable even for tourists with limited budgets.
Some of the main monuments of the Lesser Town are Charles Bridge, the oldest preserved bridge in Prague, Prague Castle which is considered as the biggest ancient castle in the world and the St Vitus Cathedral, the main and biggest Gothic Cathedral in Prague.

Andel District (Smichov)

Andel (Angel) is a very busy districts in Prague, with a big shopping mall, many pubs, restaurant and an important traffic and public Transport point (Metro and Trams).

During last few years Andel started to attract tourists seeking animated atmosphere and nightlife, this district is today one of the main concurrents of the Wenceslas Square, it’s very close to the center of Prague and in the neighborhood of the Lesser Town. Many new modern hotels opened in Andel also as several stylish apartments with very interesting prices.

Many monuments and attractions can be visited while staying in Andel district, the Church of St. Wenceslas in Smichov, the Mozart Museum also as the Novy Smichov shopping mall.

Other Districts of Prague

Hotels and apartments are in every part of Prague, so not only the areas that we mentioned are suitable for accommodation, district like Vysehrad and Vinohrady can be a great choice with many bargain hotels and affordable apartments with an interesting surroundings and easy access to the center of Prague.

For cheaper accommodation, tourists can even go further from the city center, to seek accommodation in other districts of Prague, like Kobylisy or Letna districts that provide easy connection by an organized public transport, one of the best public transport systems in Europe.