With just a couple of days in Athens what area would be best location to stay?

What do you plan to do in Athens?
Where will you come from and at which time?
Where will you go to and at which time?

We like to stay near Syntagma Square, close to museums, choices of dining.

We have chosen Monument Hotel for our Athens stay. Thanks!

Monument Hotel is very close to the central market, which is a good thing, but it is neither in Monastiraki, Plaka, nor Syntagma Square and is on a kind of trashy alley with a ton of graffiti (as is much of the neighborhood). You don't say what time of year you are going. As far as walking distance, if you go in the summer, every step you take can be punishing in the sun and takes a lot longer than you think.

Personally, I would take a good look at Google Maps street view before committing to a hotel. It looks like the Monument Hotel is fairly expensive, so with that kind of budget you have your choices.

The Kolonaki neighborhood is lovely, short walk to Syntagma square and metro. Only problem right now is they are building a metro station right in the middle of the area.

We also prefer Kolonaki.