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Prague to Berlin for 3 nights-stop at Dresden and which area to stay in?

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I will be leaving Prague by train heading to Berlin where I will spend 3 nights with a late morning departure for home.

I have never been to Berlin before and my top priority will be to see the museums, walk charming streets, possibly take a boat tour if it is recommended.

I would like to spend under $200 a night in Berlin. I gather the transportation system is amazing but nonetheless, I would like to stay in an area that has some "charm" and is more than just a business area.

Is it worthwhile since I am riding through Dresden to stop there for a quick visit? Is it really beautiful? Interesting? (I am familiar with its history.)

Thanks so very much.

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