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London Location- Beloved Bloomsbury or Upgraded Hotel in Kensington??

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i have not been to london in 30 years-- since my first adventure to europe. on my first trip, i stayed at the y.w.c.a. in bloomsbury and loved every moment. so there's this huge place in my heart for bloomsbury area.

however, this trip, (with limited funds) we will have to stay in a rather dusty spot in order to make bloomsbury work. (unless we're really lucky with priceline.) there is a really nice hotel-- with upgraded room and daily wine, etc.-- for about the same price in kensington (near south kensington station.) should i go with my heart and stay in the dusty inn, or stay at the newly renovated 4* in kensington??

is kensington a pretty area with english charm? is it easy to get around? any thoughts??
thanks,
kawh

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