In May, a friend and I stayed at the Magnaura Palace Hotel. We each had a room, and we found the rooms clean, quiet, and comfortable. Bathrooms were decent size. Front desk staff were helpful. The hotel has an amazing rooftop space that gives amazing 360-degree panoramic views of Istanbul -- including nearby Hagia Sophia and the Blue Mosque -- day and night. Breakfast is served on the top floor of the hotel with access to the rooftop for eating. There was a nice restaurant for lunch and dinner, but it has closed since my stay; perhaps a new one will fill the space. There are some restaurants nearby for evening meals, but the hotel certainly is NOT in a lively area of the city (which was fine by me!). It was a great stay, and I would highly recommend for someone looking for great views, close proximity to old town sites, and relative quiet. It's probably not a good choice for someone looking for lively nightlife.
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