The Art Hotel Prague is more than a bit off the beaten path, and we had one hell of a time finding it (despite the aid of some large signs, and the assistance of a local policeman). From the outside, it doesn't look like much and the street it is situated on doesn't look like much, but the interior is particularly comfortable and inviting, and so is the staff. The chef prepares a delicious breakfast buffet complete with eggs, bacon, various cheeses, fresh fruit, yogurt, toast, various breads and rolls, cereal, etc. The women who worked the front desk (Katie, Tereza - Unbearable Lightness??) were extremely helpful and polite. The room was clean, and well-appointed. It took us 3 days to figure out the transportation system, but once we had it down it was a snap to jump on/off the tram/subway. The #12 and #25 trams will dump you/pick you up two blocks from the hotel and bring you down into the historic section (Old Town?).
The area around the hotel is reasonably priced for dinner. The area in the historic center is waaaay overpriced (think: inside Disney World) at times. Ask the front desk staff about restaurants right around the corner from the hotel to save a bundle and get an authentic Czech experience. I did so and was surrounded by friendly locals as I chowed down on the largest fillet mignon I've ever seen for approximately $18.
Also: Like in France, it goes a looooong way with locals if you can muster together a few words in their own language, such as hello ("dohb-ree den"), thank you ("dyek-oo-yee"), and: do you speak english? ("mloo-vit-eh ang-glit-skee?").