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One night stand in Tokyo: what area/hotel to stay in?

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Hi,
Af the tail end of a 5 week trip in Asia, we'll be breaking up our return flight to the US by spending 5 nights in Kyoto and regrettably, only one night in Tokyo. So, we basically have one day and I think it'll be visiting the Imperial Palace grounds. I have a free night at the Hyatt in Shinjuku-ku, but I'm thinking it may be better to stay closer to the Imperial Palace area to optimize time. We'd also like to be able to walk around shopping/restaurants a bit. Is the Imperial Palace area a good neighborhood or do you recommend a different area. And, do you have a favorite hotel to stay at? Thanks again for your ideas.

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