Beyazıt Square, dominated by the lofty gates of Istanbul University and the minarets of the Beyazıt imperial mosque, is right next to the Grand Bazaar and the Old Book Bazaar, and only a 12-15 minute walk, and an even shorter tram ride, along Divan Yolu from Sultanahmet to the east (map).
It's a great place to stay, especially if you're a shopper. And, if you are a shopper, you'll like the fact that hotel rates tend to be lower here for what you get than in nearby—but much better known—Sultanahmet.
Why? Because Beyazıt is not as well known among tourists. There are several hotels around Beyazıt (Hürriyet) Square because it is a center of Istanbul's booming apparel commerce, but these modern, clean, hospitable hotels are just now being discovered by non-business travelers (ie, tourists), so prices still tend to be lower for what you get.
On a relatively quiet back street just two short blocks from the tram stop, this small, modern family-run hotel rated at 3 stars has all the conveniences—and simply beautiful new junior suites—at value-for-money rates. More...
—You're close to the splendid Süleymaniye mosque, Istanbul's grandest, with its good Ottoman and Turkish restaurants and Turkish bath. It's right behind (north of) Istanbul University.
—It's only a short walk (downhill) to the seafood restaurant district of Kumkapı.
—There are far fewer carpet-shop and tour touts in Beyazıt than in Sultanahmet because, except for the Grand Bazaar, Beyazıt is not yet a "tourist district."
—It's an authentic Istanbul small-shop and workshop district making and selling apparel (fabric and leather), accessories, footwear, etc. It's not pretty, but it's lively and friendly, and I myself find the authenticity refreshing after the hyper-tourist atmosphere of Sultanahmet.
—by Tom Brosnahan