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Suggestions for a place to stay in Berlin?

Does anyone have a recommendation for a hotel in Berlin? Generally we prefer small, family-run inns rather than large hotels.

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My suggestion is always to pick a hotel as close to the areas you want to see as possible, even if it is a bit more expensive. Last trip to Berlin we stayed at a small, older hotel called the Riverside. It is on the Spree River at Friedrichstrasse. Within half a block there are a number of pubs with traditional German food, Museum Island is about a 10 minute walk, Brandenburg Gate is 15 minutes or so. Even walked to Alexander Platz from the hotel, and Checkpoint Charlie about 20 25 minute walk. There is a train station just across the river. We thought is was a great location in Mitte Berlin. As I said, an old hotel with some lower ceilings, but clean and reasonable and has its own restaurant/coffee shop with a good breakfast. It's about a 20 to 25 euro cab from Tegal.