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Budget-savvy travellers might find that their best bet is finding accommodation in West London, such as Bayswater, but some people might find that this loses some of the flair of the exhilarating nightlife of the centre.
What is worth remembering is the different types of places to stay, from a cheap hostel, which can cost around £7 a night, to a slightly more expensive bed and breakfast from £12 or hotels, which can range from £40 to well into the hundreds.
These prices will also change depending on the season. Expect anywhere to increase their rates during the summer months and at Christmas, while they might slash their costs in January.
Thinking about where to stay in London? Book a cheap hotel from only £9.17 per person
Paddington and Bayswater
This area is known to be quite a good discount hotel area for young budget travellers.
You can find that rooms start from £6.99 per person at the Hyde Park Hostel, while your stay might be more comfortable at Hyde Park Towers Hotel, where per person prices are from £30 a night.
Anywhere near here is within walking distance of the Oxford Street shopping district, Hyde Park and Princess Diana's old residence Kensington Palace.
Paddington hotels are a great location for people heading off to the airport on the Heathrow Express.
Over at Notting Hill Gate, which is a great place to be during the weekend market, the two-star Ravna Gora Hotel has rooms at £29.50 per person.
Earls Court
Vibrant Earls Court is teeming with pubs, bars and a friendly night scene. It is also a quick tube ride away from the tourist hotspots of central London.
This is quite a youthful area, with hotels and hostels lining its streets.
The Barkston Rooms has some of the lowest prices in central London, with a night's stay from £24.90 per person, while the Windsor House Hostel, a two star B&B, has twin rooms from £30 per person.
If you've come to London for an exhibition, conference or show in Earls Court you can book a nearby hotel from just £9.17
Hammersmith and Shepherd's Bush
You can find plenty of gigs going on at the Hammersmith Apollo and other venues, and there is a huge Australian gathering of travellers in this area, who are always willing to meet new people.
Westfield Hostel in Shepherd's Bush has rooms from just £8 per person for the true budget traveller, while a So London Apartment can be rented in Hammersmith for £37.25 per person.
Victoria
Staying in Victoria will suit travellers who are flying in from Gatwick, but it is also a great place to find plenty of cheap places to stay.
The Belgravia Hotel has rooms from £31.25 per person, while three people can share a room at the Belgravia Rooms London for only £59.50.
Cultured types can walk straight from Victoria to Buckingham Palace, which is open to the public from the end of July until early October and the area is easily located from Green Park, the Houses of Parliament and the National Gallery in Trafalgar Square.
Marylebone, Oxford Street and Marble Arch
Marylebone may be more famous as a railway station on the Monopoly board, but it is also a prime location for Oxford Street shopping trips and lazy days in Hyde Park.
Hotel rooms start at £30.33 per person at the Hadleigh Hotel, while nearby destinations Oxford Street has rooms from £23.25 per person at Marylebone Hall.
Marble Arch fans can find a bed at the Boston Court Hotel for £24.75.
Kensington
Kensington might seem like a posh place, but the Kensington Suite Hotel is a three star accommodation with rooms from around £40 per person.
This is a great location for London's best museums, as the Natural History Museum, Science Museum and the Victoria and Albert Museum are all right next to each other.
Walk further down Knightsbridge and you come to one of the world's most famous shops – Harrods. There are plenty of other fancy stores around this area as well.
Islington and Holloway
North London, home to Islington and Holloway, has its own unique identity, with high street shops, independent restaurants and some brilliant pubs and bars along the busy Upper Street.
Rooms start at £24 per person at the Athena Palace Hotel on Turnpike Lane, while Rosebery Hall in Islington has a small twin room for only £19.50 per person.
Hotels in Finsbury Park can come in the range of budget accommodation at Beaconsfield Hotel, where rooms start from £20 per person.
Camden
With hundreds of bars, clubs, shopping and a heavy youth crowd, there is always something to do in Camden.
The area is a popular location for tourists and bargain-savvy travellers can find a spot at the Pemberton Gardens Guest House for just £11 per person or for less than £10 at the Camden Inn.
Find budget saving hotels in Camden from only £9.17
Bloomsbury and King's Cross
The home of England's literature elite, hotels around Bloomsbury will provide the perfect location for fans of the British Museum, as it is right in the heart of the area on Great Russell Street.
This is quite a touristy area, with some upmarket hotels, but ten minutes walk away is King's Cross, where travellers can find a room from £14.47 per person at the Susan Lawrence Hostel or a three star B&B from £25 per person per night at the Montana Hotel.
King's Cross is an ideal location for clubbers as a walk back from the clubs of central London after the tubes have closed will only take 20 minutes.
Liverpool Street and the City
Liverpool Street is the financial district of London, but it has a lively day and nightlife, with plenty of suited drinkers.
Dance to 80s music every night of the week at Reflex on Watling Street before taking a short bus trip back to the hotel, or during the day head over to St Paul's Cathedral, just minutes away by bus or on the central line on the tube.
Bow and East London
Hotels are incredibly cheap in the East End, such as the three star Best Inn Hotel in Ilford for £19.95 per person.
While Ilford might seem far away, the 25 bus route takes just over half an hour to get into Holborn and 40 minutes right into Oxford Street.
In Leyton, you can find rooms from as little as £13 per person per night at Stress Less Leyton hostel and from £15.75 at Stress Less Walthamstow hostel.
Closer to central London is the Sacred Heart Lodge in Hackney, a trendy part of the world, where rooms start at £22.40 per person.
Stay in an affordable hotel near in Bow and other East London areas from £9.17 per person
South-east London
As you get towards the south-east, you can find some bargain hotel rooms and the area is still easily accessible to central London on the tube.
The Queens Hotel in Crystal Palace has rooms from only £15.50 per person, while prices at Peckham Lodge start at £14. This is an ideal location for any gigs happening at the O2 Arena.
Meanwhile, the Norfolk House Hotel in Croydon could be a good bet for Gatwick travellers where rooms are £12 per night per person.
London Airports
Most airports will have a nearby hotel, but these can be costly.
Instead, take a short trip outside the airport grounds and you can find a room from just £10 per person at the Pay and Sleep Hotel, located ten minutes from Heathrow.
Gatwick travellers can stay at the Gatwick White House Hotel for £20 per person, just over one mile from the airport.
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