First time in Korea? Looking for a place to stay? Do not know which area?
First of all, what kind of place do you want to stay in.
Beware of Hotels. Especially cheap hotels. Most cheap hotels are actually motels. It is okay if you do not mind staying in a place where people just walk in for a few hours. Furthermore, staff speaks limited English and are less friendly.
For travelers with kids I highly recommend higher class hotels or if you have limited budget, stay in hostels or guest house.
Second, what kind of area do you want to stay in.
If you like to see traditional stuff, I would say Insadong. You may reach most attraction by foot if you stay at Insadong.
If you enjoy shopping, I would recommend Myeongdong for cosmetics, Dongdaemun for middle range shopping, and Ewha women's university area for cheap clothings. For luxury shopping, stay around Apgujeong.
As for nightlife, stay at Hongdae for reasonable entrance fee and alcohol prices. Gangnam is also a nightlife area but entrance and drinks are more pricey.
Third, if you are coming alone do not bother to take a private room. Dormitory with less people are normally very clean.
Forth, if you are just here for a transit with a small backpack, try out the Jjimjilbang. Its a place with hot bath and sauna.You could just sleep at the common area on the floor. It normally have a room with bunk bed (separate gender) too.
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