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Prague Christmas

My husband and I are heading to Prague for christmas this year. We were wanting to stay somewhere with a great Christmas atmosphere and close to the Christmas markets. what would people suggest to stay and things to do whilst there over christmas?
thanks

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My wife and I were there last Christmas and stayed in two terrific hotels. K+K Hotel Central is on Hybernska just to the east of the Powder Tower and about a 5-10 minute stroll from Old Town Square (and therefore quiet). It's a beautiful Art Nouveau building: large, modern rooms, huuuge breakfast. Hotel Metamorphis is a little closer in, bordered by Mala Stupartska and the Ungelt Courtyard behind Tyn Church. Again, huge breakfast in the adjoining restaurant. Maybe a little more street noise. These are both 4-star level hotels but because the dollar goes so far there, we paid just under $100/night at both of them.

Lots of concerts happening - catch something at the Spanish Synagogue. Skip the Black Light theatres. Mucha Museum was great. There's an English-speaking Shakespeare company - Prague Shakespeare!

Restaurant recommendation we got from a local: Giallo Rosso, Jakubska 2, across from Hotel Metamorphis.