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Luxembourg Accommodation

Looking for one place or two for 5 days (for 4 people)to visit the capital and do some hiking in the mountains. Any suggestions?

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We stayed at the Hotel Mon Plaisir in Strassen, a suburb just outside the city itself. It's not luxurious, but it has free parking and the staff is wonderful. Check out the reviews on sites like booking.com and tripadvisor.com.