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Hotel recommendation in Berlin - is Mitte a good area to stay?

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Hi

We will be in Berlin mid Janury 2014 and are considering the Mitte area.

Would you recommend this as a good, interesting area to stay - and reasonably central to all major sights?

Any favourite hotels that are interesting/quirky and smaller and more personal - up to 150 Euro/night.

Look forward to any suggestions.
Thanks. Helen

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