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If you are looking for a reasonably price hotel go with the Hotel Axa in downtown Prague. It's walking distance from Old Town Square and was reasonably price when I was there a few years ago...
Otherwise I recommend the pensions. Do a google and you should find a good list of very affordable places to stay.
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"My hands are on fire. Hands are on fire. Ain't got no more time for all you charlatans and liars."
- Old Man Luedecke
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