Accommodation in Prague will probably be a most expensive item on your itinerary (compared to the price of almost everything else in Prague). Prague is busy all year rounds so it is best to arrange accommodation in Prague before you go. If you are travelling around Christmas, Easter and July or August it is almost necessity to book well ahead.
The number of stars does not frequently correspond with international standards, because sometimes the owners class their businesses themselves. Did you know? The Telegraph has recently run an article on the best places to stay in Prague: Four Seasons Hotel Prague (for luxury), Hotel Neruda (for intimacy) and Hotel Josef (for design).
Private Accommodation (pensions)
Can be much cheaper alternative compare to Hotels. You can find agencies offering such accommodations all over Prague, including at the main train station, Holesovice. Rates start at around 400 CZK per person per night.
Pension Unitas.
Rooms were once prison cells. Dormitory from 270 CZK. Huge breakfast is included in price.
Pension 15.
Excellent value - budget option. Modern rooms with shared facilities from 350 CZK (600 CZK for single).
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