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Need suggestions on where to stay in Porto?

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My DH & I are planning a trip to Portugal in October. We will fly into Porto & stay 2 or 3 nights before going on to Lisbon. I am unsure what area to say in. We like to be in an area that we can walk to restaurants, some sites, and close to public transportation. We prefer not to stay in large chain hotels or 5* hotels Any suggestions will be appreciated.

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