Sultanahmet/ The Blue Mosque/ The Old City
This is a superb location where many tourists choose to stay. This area is choc full of small, traditional hotels within walking distance to the Blue Mosque, Hagia Sophia, Topkapi palace and the Basilica Cistern. A short walk will take you to the Grand Bazaar and if you don't feel like walking to the new city, there is a frequent tram link. As you might expect, the Sultanahmet area is full of traditional restaurants and shops with souvenirs catering for all tastes.