Like NewbE, I'm inclined to think Penn Quarter is the best current location, although I'm also fond of Dupont Circle and even Woodley Park. I'm not a big fan of Foggy Bottom, although I'm sure it suits many people's needs very well.

nelsonian, You should have lots of options in early January. Capitol Hill is another area you might consider during your search, especially for VRBO listings.

I like NewBe's areas. Capitol Hill is a residential area and has lots of rentals. You could also look in Woodley Park or Adams Morgan for a rental. Agree that January shouldn't be too hard to find something.

Doug,

What restaurants in/near Dupont Circle do you like? We might stay at the Fairfax (if we don't end up at the Sofitel).

Wow, Underhill, you don't care what any of the rest for us say about restaurants in / around Dupont Circle? Good luck!

I like Bistrot du Coin, and I've eaten there a few times, but I have to say that I may not be the right person to give these recommendations. The last two times I've been to DC I haven't stayed in Dupont Circle, so I'm not up on the best places to eat there. I've always liked the neighborhood for the vibe more than for the specific restaurants there. I tend to go out and seek places to eat that I like regardless of the neighborhood. But in terms of good food, there seems to be more going on these days in other parts of DC than in Dupont Circle itself.

For example, when I stayed at the Embassy Suites, I ate at Vidalia and Founding Farmers. Neither of these is exactly a new place, but both are pretty established now. While the latter was a mob scene, I thought the food was well priced and very good, but it was so crowded that I almost didn't enjoy it. Vidalia was quieter and more my style of place, and I liked the food a lot, but it was expensive. We walked to both restaurants from the hotel. I ate at a third restaurant but can't remember the name. Before that I stayed at the Grand Hyatt and ate mostly in Penn Quarter and Capitol Hill. I was in DC a couple of weeks ago for just one night, but I was with family and ate at PJ Clarke's so I don't think that really counts as a recommendation (they do have good burgers).