My parents (both 60+) are planning their first trip to Europe this May and are looking for a place to stay. Can anyone recommend a good hotel for travelers who've never been to Europe that is well-situated and is around or less than $250/night? I've explained to them that European hotels generally aren't as large as those in the U.S. and that London is pretty expensive.

In May 2006 I stayed at a Hilton near Holland Park. Also my first trip to Europe. It was walking distance to subway stop as well as to Notting Hill. Short subway ride to other attractions. Clean, reasonably priced, safe area. Maybe it will work for your parents. I believe the rate was about 150 pounds.

I like the area north of New Oxford Street and West of Marylebone - as far over as Bloomsbury. It puts you in the centre of the city, with shopping, restaurants, High Park and theatres within walking distance. There are a lot of tube lines, so it's easy to get around. It's not as expensive as Mayfair south of Oxford Street. For moderate budgets, there is a Holiday Inn on Welbeck Street - nothing fancy but convenient and at a good price. I also considered, but ultimately cancelled, a booking at the Jury's Inn Clifton Ford in the same area. (Cancelled because the trip was cancelled).

Some of the London Hiltons are rather run down and not worth the money. Some of them that present themselves as being in the popular Kensington area (close to a number of museums) are actually rather far west.

Some hotel chains to consider in addition to the usual US brands are Jury's Inn, Thistle and Radisson. Some of the Thistles are rather tired (I'd recommend against the Thistle Selfridge unless they're bargain hunters, but I liked my stay at the Thistle Charing Cross - booked on Priceline for a steal).

The Rembrandt in Knightsbridge should fit the bill. Right across from the Victoria & Albert museum, a few blocks west of Harrods, just east of the S. Kensington tube station with bus stops right outside. The rate includes VAT & breakfast.

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Bpesta
We're newbies to Europe and will be in London during March. We decided to go with B&B Hotel Vicarage - http://www.londonvicaragehotel.com.

The B&B is located in between High Street Kensington and Notting Hill Gate tube stops. We booked a double at GBP 102/night, with private bathroom and breakfast included.
Gohedwig

In addition to carryBean's Rembrandt suggestion, which is excellent., you might try Http://www.londontown.com for good deals. Lately we( in our late 60's) have been staying at Millenium Baileys, just across the road from the tube station, a short walk to V&A and Natural History museums. There are lots of busses nearby and many restaurants and services. We've been getting a deluxe room with breakfast included for about 90 £ per night.

Either Millenium Bailey's or the Rembrandt would be great choices in your parent's price range. Unfortunately the Vicarage might not be the best choice - depending on how fit your parents are. It is 5 stories and there is no elevator and is a bit too far west to be near many attractions.

Check out the Londontown link and look over some of the other properties and then you can come back and ask about any others that interest you/them.

Priceline, priceline, priceline.com!

Learn the ropes at biddingfortravel.com

Don't worry about well-situated. All of London is safe, the sights are spread all over the place, and there's a bus stop on every corner.

Thanks to all for your replies. Much appreciated. My parents have booked the Thistle Westminster. Hopefully they'll like it as well as those you've suggested.