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Where to Stay in Zurich

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We arrive Zurich and will stay there 2 nights. When we leave we'll be taking a train to the Upper Engadine. Any suggestions on what areas to stay? Any specific hotel recs for 2 people. Something reasonably priced which appears to be at least $200 USD in Switzerland. Is that reasonable or do I need to up my budget? (I have found the prices in Switzerland jaw dropping!)

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