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San Francisco hotel choice for 25th anniversary trip

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Will be in San Francisco for four or five nights during the last week of May 2012 for our 25th wedding anniversary. I'd like your suggestions for a great hotel for our stay. We will not have a car, and this is our first visit to the city.

Is the Union Square area a good one for our hotel? Variety of restaurants, good public transportation, etc? As far as the hotel itself, we'd like to keep it under $300 a night, if possible, but we want something nice. Any advice is appreciated.

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