Best area to stay: the city centre
Staying within 10 minutes' walk of Bryggen is worth the premium. The central neighbourhoods — Nordnes, Nøstet, and the area around Torget — put you within walking distance of all major attractions, the funicular station, and the fjord cruise departures. You don't need a car and you don't need to spend time on buses. The Bryggen area itself has hotels but they tend to be the most expensive; slightly inland (around Ole Bulls Plass and the theatre district) gives similar access at lower prices.
Budget accommodation
Marken Gjestehus on Marken is Bergen's best budget option — clean, central, friendly, and with some of the cheapest beds in the city. Bergen Hostel Montana (on Mount Ulriken) is excellent value but requires a bus journey and is only practical if you're doing a lot of hiking. Citybox Bergen is a reliable mid-budget hotel chain with self-service check-in and good central locations. Expect to pay ~700–1,000 NOK for a budget double in high season.
Mid-range hotels
Thon Hotel Bryggen is the best-located mid-range option — directly on the waterfront facing Bryggen, good rooms, reasonable breakfast. Hotel Ole Bull near the theatre is slightly more characterful and has easy access to Bergen's best restaurants. Strand Hotel has harbour views and is well-reviewed for comfort. For mid-range, budget ~1,200–1,800 NOK per night for a double in summer.
Luxury and special occasion
Hotel Norge by Scandic is Bergen's grand old hotel — central, elegant, a Bergen institution. Opus XVI, in a restored merchant bank, has some of the best interiors in the city. Cornelius Fiskrestaurant occupies its own island in the harbour and offers rooms, but it's primarily a dining experience. The most romantic option for special occasions is renting a traditional wooden house in Sandviken or Nøstet via Airbnb — the 18th-century wooden neighbourhoods north and west of Bryggen are genuinely beautiful.
Neighbourhoods to avoid
Fana and Ytrebygda in the south are where budget chain hotels cluster near the airport road. They're perfectly fine but require bus rides to reach central Bergen — you lose time and money on transport that would have been better spent on accommodation. Unless you're renting a car, stay central.