In central London, your best bets are the following three districts: Bloomsbury, Paddington and Kensington.
Bloomsbury is London.s literary capital - lots of bookshops and near one of London.s biggest tourist lures . the British Museum. Plenty of nice and affordable hotels in the area.
Paddington is famous for its train station and is close to the tranquillity Hyde Park and Kensington Gardens. A good area looking for budget hotels.
Kensington is delightful place full of chic boutiques, expensive restaurants, snooty aristocrats and whippet-thin IT girls in slick sports cars. Lots of small but extremely nice boutique hotels in the area.
Outside central London, Dockland is a good bet for nice and reasonably priced hotels. Dockland is the new center of London developed over the last 20 years. Canary Wharf has become one of Europe's biggest clusters of skyscrapers and direct challenge to the financial dominance of the City. 2012 Olympic game will also be held there. Travel to central London takes about 30 mins via Tube and Dockland Light Railway.