We stayed at a hotel called U Malvaze near Charles Bridge, which was an ideal location in order to be able to see both sides of the historic city of Prague. I’d recommend having breakfast at the hotel otherwise the choice is quite limited, however, there are plenty of places to eat lunch and diner that offer very good food and value. Try not to get sucked in with the people who tout for business. We had a lovely meal at a restaurant called The Bistro, which was a wine bar, 30 minutes walk from Charles Bridge. The atmosphere was great and the food was excellent, well worth the walk.
The historic castle was very picturesque with an incredible view of the city. Make sure you also see the old town square and John Lennon Wall.