Downtown is incredibly difficult to get in/out of and parking is a major PIA, unless you stay someplace that has valet parking, but many of the downtown hotels are charging big bucks for parking. Some of them, as much as $50 for valet, whether it's an hour or all night. I dare say many of the locals shy away from downtown. However, if you're coming in for an event like MotoGP, F1, SXSW, ACL, you can really capitalize by being downtown for all the visitors, and can probably command higher rates during those events for being conveniently located downtown. Otherwise, I agree with 3M, and suggest the Domain or Arboretum areas.
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