Berlin's Mitte, Prenzlauer Berg, and Kreuzberg districts each have distinct characters and solid accommodation options. Munich's central neighborhood near Marienplatz is ideal but pricey — Schwabing and Maxvorstadt offer more local alternatives.
Germany has excellent hostel and budget hotel infrastructure nationwide. Business hotels like Ibis and NH are consistently reliable mid-range options. For something unique, try half-timbered guesthouses in the Romantic Road towns or ski chalets in the Bavarian Alps.