Question about neighborhoods in London

Are you looking to pay 100-150 dollars or pounds? Makes a big difference (100 British pounds is about $158 US dollars). As for being close to public transportation, pretty much anywhere in Zones 1 or 2 is close to public transportation. For that matter, even places in Zone 6 are close to public transportation; it will just take you longer to get to central London. Take a look at this tube map and you will see what I mean: http://www.tfl.gov.uk/assets/downloads/large-print-tube-map.pdf
Of course, there are buses too. Are you saying you don't want a long commute from Heathrow? Heathrow is not in central London, and I do not recommend staying near there if your main goal is to sightsee in London. Most tourist attractions are in Zone 1. Heathrow is in Zone 6.

Margaret, Thank you for your reply. That is helpful. How do most people get from the airport to their hotel?
We will not be renting a car and will have a large suitcase to carry. We were thinking we would have to spend between 100 - 150 American dollars to get something descent, I've only been looking at the bed and breakfast places only. We were told that the hotels are very expensive in London. Is that a reasonable rate?

Most people either take the tube (cheapest option), a shuttle, or a car service (most convenient). For two people sharing, a car service is probably cheaper than 2 shuttle tickets. If you are staying in or near Paddington, you could also take the Heathrow Express (overpriced and overrated IMO), or the Heathrow Connect, which is half the price and only 10 minutes slower. I would only take the Heathrow Connect if I were staying walking distance to Paddington Station. Otherwise, you have to take a cab or the tube from Paddington to your hotel, which pretty much eliminates any time savings. Not worth it IMO. You could get a car service for about the same price as 2 Heathrow Express tickets, with no schlepping and it would be door-to-door. Or just take the tube from Heathrow to your destination. No sidetracking to Paddington and much cheaper. Heathrow Express: http://goo.gl/Mzc6z Heathrow Connect: http://goo.gl/FwVWd Two shuttles you can try: http://hotelbybus.com/ http://www.heathrowshuttle.com/ Two popular car services: , http://www.london-transfers.com/ http://goo.gl/ccc38 Your budget is a little low for London, but doable. One option is to bid for a hotel on Priceline. You could get a 4-star hotel for about $100, which would be about $125, including taxes and fees. You can find bidding strategies and recent hotel wins on http://biddingfortravel.yuku.com/

If you don't feel comfortable bidding on Priceline, there are many budget hotels in your price range. Some are fleabags, but here are a few that have good reputations and that consistently get good reviews. Please note that many small hotels in London are the equivalent of B&Bs in the U.S. Also note that $100-$150 is about £63 - £95: Studios-to-Let Serviced Apartments, Bloomsbury: http://serviced.studios2let.com/ Cherry Court Hotel, near Victoria Station: http://www.cherrycourthotel.co.uk/ Arosfa Hotel, in Bloomsbury, near the British Museum: http://www.arosfalondon.com/
Celtic Hotel, also near the British Museum: http://goo.gl/2SKK3 Ridgemount Hotel, Bloomsbury: http://www.ridgemounthotel.co.uk/prices Hotel Meridiana, near King's Cross: http://www.hotelmeridiana.co.uk/ Check tripadvisor for reviews and pictures: http://goo.gl/9OtoJ Since you asked about transportation, I also recommend you get an Oyster card. Less expensive and more convenient than paying for point-to-point tickets. It can be used on the bus, tube, and most of the rail. See here for more info: http://goo.gl/x6HD4 (I had to split my post in two because it was too long).

Judy - Lots of options exist to get between the airport and central London. A taxi or private car can be had, but both are expensive unless you are sharing. Heathrow has excellent rail connections. The Heathrow Express will get you in to Paddington Station in about 15 minutes. Cost is around 34GBP return. https://www.heathrowexpress.com/ Heathrow Connect is a slightly slower train service, takes about 25 minutes to get to Paddington. https://www.heathrowconnect.com/index.asp?SID={74C6002A-D52D-46A3-AA65-9CB8A94875E9} The cheapest rail option is the Tube (subway). You can get from Heathrow into central London for about 6GBP. Depending on where you need to go, plan for 45 minutes to an hour. http://www.tfl.gov.uk/modalpages/2625.aspx I've done all three - the Express is certainly convenient, but costly. Large bags on the Tube are not a big deal, if you are willing to deal with the hassle of getting on/off a subway with your gear in tow.

As Margaret said, if your budget is 100-150 DOLLARS a night, you are planning slightly on the low side. Commutes are relative. The wonderful thing about London is that no matter where you stay, rail and bus are not far away. When you say commute - are you referring to your time in London (time from hotel to attraction) or time from the airport to hotel?

@Margret guess I'm not most people. I always cough up the money and take the Heathrow Express into London because I can't wait to get there. I also on travel with a carry on so it's great. Hop on and go. I do agree about Priceline though as I bid on my last London visit and got the Marriott Regent's Park for $99/night. A steal and excellent accommodations. Tube 3 blocks away. Judy you might also take a look at the At Home in London website. For first time visitors having a host can pay dividends.

If you are going to be using a consecutive day or flexi britrail pass your usage of both the Heathrow Connect or Express is built in. Note that if it is the flexi pass you would be using one of your days.

I frequently stay at a very reasonably priced family-run B&B/hotel that's very close to King's Cross and St. Pancras stations - The Alhambra Hotel - http://www.alhambrahotel.com It's pretty basic - small rooms, no elevator, etc., but it's very clean and the "full English breakfast" is included. The location is excellent - you can take the tube directly to/from Heathrow, the British Library (with outstanding exhibits and no crowds) is a five-minute walk, and King's Cross is a major tube station, giving easy access to pretty much anywhere you want to go. I highly recommend using an Oyster card for tube, bus, etc., travel - http://www.visitlondon.com/travel/oyster/