Most of the new four- and five-star business hotels are in the downtown Microcentro area, where banks, government agencies and many big companies are located, or in Retiro and Puerto Madero. The Microcentro area also has shopping, theater and art galleries, though it's not the most picturesque part of town.
The Recoleta neighborhood, a 15-minute drive north, is a more upscale area, with more expensive hotels, shops, restaurants, art galleries, museums and entertainment options. Slightly farther north, a small number of boutique-hotels makes Palermo Soho a nice base for visitors who prefer an artsy, residential neighborhood with its own nightlife options. The other divisions of Palermo, in spite of their attractions, are almost entirely retail or residential and have very few hotels.
San Telmo is your best bet for cheap hostels, which usually offer good quality.
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