Would like help choosing a hotel in Lyon close to the Old Town but not quite as expensive. Any suggestions?

If you are interested in the old town location, Hotel St.Paul comes to my mind. A small 2-star hotel, in the old town itself, near the railway station St.Paul. Once I tried to book it the day before my arrival but the hotel was fully booked so I can not tell how good it is. I had been to Lyon many times, however, so I knew the place from outside and was interested. I don't know what is your "not quite as expensive" but I believe St.Paul's rooms are around EUR 55.00 range. You should be able to find more info by doing some Google search if you are interested. I also stayed at Hotel Campanille facing Place Carnot outside Perrache Railway Station. Small room with clean bathroom,buffet breakfast included(school cafeteria quality - OK just for a coffee and a croissant, I thought). They granted my request for a higher floor for a view. I got the top 7th floor with a balcony facing Place Carnot and unexpectedly a great view to the Basilic Fourvier(sp?). For EUR 45.00 last year, I have no complaint with this hotel. Usually I don't stay near the railway station but that was not a problem either. 10 minutes walk to Place Bellecour(sp?) and another 10 minutes to the old town.

I also have stayed at the followings in last two years :
-Hotel Residence between Place Carnot and Place Bellecour (ca.EUR.60.00)
-Comfort Inn near the pedestrian bridge to the old town. (ca.55.00)

I encountered no major problems at any of above 4 hotels but remember they are all with basic equipments. Residence is slightly nicer than the other three.

In May I'll be staying at the Hotel DuBost for the second time. It's right on Place Carnot as Kite mentioned. It's a very decent area considering the Perrache train station is right there. It was a pleasant two star hotel, clean and well located for public transportation. I had a room at the back, no view except other buildings, but very quiet.

www.hotel-dubost.com

For this Spring I'm using the "bon weekend en ville" plan. It's a weekend buy one night, get one free deal. I was quoted a single room for Friday and Saturday night breakfast included at 61.10 euros total. My Sunday night stay is the regular 48 euros with breakfast for 6 additional euros. (Which I won't be taking breakfast. Since I don't drink coffee, 6 euro for a croissant, jam and a glass of OJ? No way.)

That's why I'm not too worried about the euro cost vs. the USD. For an average of 36 euro a night for three nights and two breakfasts included, I still don't think France is all that expensive. Where in the US am I going to find a pleasant two star hotel downtown in a major metropolitan area for under $50 a night?

If you're there for a couple of nights over a weekend, you might look around for other hotels in Vieux Lyon that offer the "bon weekend" plan. It works for Friday stay Saturday free, or Saturday stay Sunday free. It could let you stay closer to Vieux Lyon in a little nicer hotel. Use the drop down to select Lyon.

http://www.tourisme.fr/week_end/ot-index.htm

Walk around the market in Place Carnot if you're there Sunday morning. They have a puppy market going on. You can see a dozen or so people selling the cutest puppies and kittens.

Thanks for the info. I will look into the hotels you recommend and am also grateful for the other general suggestions. I'm not sure I want to see the puppies sold because I'll never leave there without taking one with me.!!!

Check out the Hotel des Artistes, right across the street from the theatre. Clean, nicely appointed, not expensive, friendly, etc.