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London Neighborhoods - Where to Stay?

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I am planning a family Britain trip for August 2013. I am struggling a little bit on identifying accommodations in London. The issue is that London is so huge, I don't really know where to start my search.

I would love to hear from people on their favorite part of London to stay.

With respect to us ... party of 4 - including 2 tweens - tend to enjoy being in the center of things - peace and quite not an important factor - willing to spend on a nice hotel - but not looking for some kind of super luxury place

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