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Hotel for last night in London--for family of 4

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Hi everyone,
Can I please ask your help in picking a hotel in London for our last night of the trip? We leave the next day from LHR on an afternoon flight. I've been to London once before (and will spend a week at the beginning of this trip) but only staying in flats near Gloucester tube. I know literally *nothing* about London hotels and would love to hear your expert opinions, favorites, and logistical recommendations.

We're a family of 4 (2 adults/2 kids), so we'll need 2 adjoining rooms or a room for 4 with 2 beds.

Budgetwise: Since it'll be our last night in London, we're willing to splurge a little and spend up to about $600 a night for the 4 of us (but would prefer less). I do have enough Ambassador points to get one free classic room at the Intercontinental (and then pay for the adjoining room)... so that's essentially my benchmark and my threshold. Beyond about $500-$600 (for both rooms), I may as well stay there (which of course would be lovely). But I'd love some other options.

Location: I think I'd like something close to Hyde Park Corner/Knightsbridge so it's close enough for last minute sightseeing and to run the kids through the park. But I'm open to any other suggestions. And then again, staying in a hotel also presents an opportunity to explore a neighborhood or boutique property I wouldn't otherwise choose for a longer stay... so maybe we should be looking at something more interesting... (i.e. Chelsea, something with a view toward the Parliament buildings or the Thames?)

Vibe & amenities: I'm way past the age where I'm willing to stay in cheap budget hotels with dingy furnishings and sagging beds to save a buck. I have to admit, I really like a comfortable mattress, nice linens, and charming architectural touches.

Transport to LHR: I haven't decided yet how we're going to get to LHR. We have an afternoon flight from LHR on a weekday, so I'm not too worried about making specific connections to LHR (like I would on a weekend or very early flight). But should I pick a hotel based on easy connections to LHR? That might be a factor in selection.

Thank you all for your recommendations and help!
-skatterfly

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