We have returned from a week in Istanbul (September 2006) having stayed at The Garden House in the "old city", a small (12 room) hotel that I believe was rebuilt 1 yr. ago. It is nestled into the old city & one gets a "real feel" of what the area is all about.
The managers, Murat & Selcuk were excellent & went out of their way to make you feel comfortable in all aspects of our stay. They were very knowledgeable of the area, it's sights, attractions & culinary delights, (please, if you stay here, you MUST try the lentle soup made in the hotel, it is superb), & offered good sound advice to our questions.
The rest of the staff were also very accomodating & little was left to chance. The room was a very good size with "walk-around" space, the bathroom was a good size & above all, we found the room to be exceedingly clean.
The location is perfect, close to all the local attractions, no need for a taxi or bus, but wear good shoes for walking. All of the major attractions are within walking distance, Blue Mosque, Hagia Sofia, Grand Bazaar, Topkapi Palace & the Cisterns. Though the Garden House does not have a rooftop dining area, don't let that dissuade you from staying there, as you need only go 2 minutes around the corner & you have a magnificent view of the Bosphorous Sea.
Take a walk down to the fish market (5-10mins. away) it bustles with all the fish being sold & they take great care in making them pleasant to view.
Be prepared to hear "the call to prayer" early in the morning. It only woke us on the first morning & then it blended in to our regular day.
This would be my only choice for a hotel in the "old city" of Istanbul & I have no problem suggesting that others stay here. I found it through reading the reviews at Trip Advisor & hope that someone else reads this, makes a reservation & enjoys it as much as we did.
A traveller from Canada