Istanbul's Sultanahmet district puts you steps from the main sights, while Beyoglu (Taksim/Cihangir) offers a trendier, more local feel. Boutique cave hotels in Cappadocia's Goreme are among the most distinctive stays in the world.
The Aegean and Mediterranean coasts offer a huge range from budget pensions to ultra-luxury resorts. Bodrum's whitewashed boutiques and Fethiye's guesthouses near Oludeniz beach are popular mid-range choices.