I was in Istanbul recently with my fiancée, and we had a GREAT time. We stayed at a fabulous boutique hotel called Kybele Hotel (go here for pics, reviews, etc. http://www.tripadvisor.com/Hotel_Review-g293974-d295492-Reviews-Kybele_Hotel-Istanbul.html) . It was in an absolutely perfect location, very short walks to Topkapi Square, Aya Sofia, Blue Mosque and literally on the same block as the Cistern. Unbelievably quirky and quaint...room was a "small double" and was just fine since we really only slept there. All rooms, hallways, lounges have lit lantern lights hanging from the ceiling. Like hundreds of them. Sets a great mood! Bathroom in the room was spacious, and super clean. Breakfast included, and there were lots of small sitting areas on different levels of the hotel that made it magical. As for food, we loved it. We went (on the same block) to two restaurants, one was called Medusa -- and they had great food (not so cheap) and a fantastic musical trio playing Turkish music. We also went to a restaurant next to the hotel that was really good, though I forgot the name. Great food, great hotel, friendly/helpful people all over. A must if you've not been already!!!