I will be going to Montreal for 3 days during new years. I have found many cute hotels in the Old Town area. Is it better to stay in the heart of the city or in Old town? I can't seem to get a good sense of what the difference is. Any suggestions?

Impossible to answr. There's something to be siad for both.

The good news is they are pretty close to each other.

I'd pick old Monteal over the holidays, because I'm not much of a shopper. But I'd go downtown at least once, and I'd head up St. Laurent at least once, too.

The good news is that downtown and Old Montreal are close enough to walk between. Dress warmly.

BAK

I agree with BAK. Both are close enough to each other that you can walk (or easily cab it for $10). Old Montreal is prettier - and would probably be nicer over the holidays -rallen's gf posting for him

The Old City is very charming, with old stone buildings, cobblestone streets, and lots of photo ops. However, this area is small, and a bit isolated from the rest of the city because the metro doesn't have a stop there (the closest stop is about 3-4 blocks uphill). The downtown is somewhat like midtown in any major city, but with a strong French influence. For a first visit, I would probably recommend the Old City.As others have mentioned, one can easily walk from the Old City to downtown, however in the dead of winter you might want to take a cab. To further confuse you, perhaps the most 'fun' part of the city is neither of the above, but the St. Denis/Plateau area.

As a compromise, I would suggest the W Montreal or the area near there. It's between Old Montreal and the St. Catherine.