Prague- Old Town

Not sure about parking, but my wife and I stayed at the Hostel Tyn last month. Very nice, clean and comfortable. 5 minute walk from Old Town.

FYI - Many of the streets in Old Town are pedestrian only and the density leaves little room for parking. But you may find good options just outside that sector and that are very easy walks.

We will be staying at Pension Anna in October. They have a garage available for 100Kr, room is 1550 Kr. 10 min walk to town. www.pensionanna-ck.cz
Good reviews on trip advisor, but we have not stayed there.

Try the Hotel Roma. Stayed there a few years ago and it was under $150. Good location, maybe 1/4 mi from the Charles Bridge and on a convenient tram line.

It's really a no-brainer to book the Arcadia Residence: http://www.arcadiaresidence.com/ They have 2 locations with the main being in Vysehrad which is very close into downtown: http://www.tripadvisor.com/Hotel_Review-g274707-d612009-Reviews-Arcadia_Residence-Prague_Bohemia.html or they have apartments in the Old City: http://www.tripadvisor.com/Hotel_Review-g274707-d655299-Reviews-Arcadia_Old_Town-Prague_Bohemia.html They get rave reviews about the actual rooms/apartments as well as the included breakfasts prepared by "mama" and the high level of personalized support offer by Pasquale both before and during your stay.

Our travel agent arranged a hotel that more resembled a B&B called Hotel Metamorphis. Not a lot of rooms but each is built into the contour of the old building that houses the hotel. Part of the charm is the buffet breakfast, common at most European hotels. You have to go down a winding staircase three floors and arrive at a dungeon disguised as a restaurant. Extremely reasonable. Check out Jay-Way Travel for more info. He specializes in Eastern European travel.