There's no denying that a holiday in Venice can be expensive, but most visitors agree it is worth the cost once you've planted yourself in one of the world's best-loved cities. The city is relatively compact, and most of the hotels are concentrated in touristy areas like San Marco Plaza or Cannaregio.

The finest hotels here spare no expense in pampering their guests, and those that can afford the city's most elegant suites will receive some of the best service the world can offer. While budget offerings are practically unheard of, there are a number of mid-range venues situated away from San Marco and the Grand Canal, but still within easy reach of all the attractions.

Hotel Cipriani offers world-renowned service and enjoys one of the finest views in Venice overlooking San Marco Plaza. Among its amenities and services is a heated, salt-water swimming pool. Bauer Hotel, also in San Marco, is a century old, offers impeccable service and is richly decorated with beautiful antique furnishings. The Grand Hotel dei Dogi in Cannaregio is an exclusive hotel housed in a former convent.

San Marco is built up around the plaza and church of the same name. Tourists congregate here and the sheer volume of hotels and restaurants is astonishing. This is one of Venice's premium locations, and guests of the area's hotels can walk out the front door and stroll along the Grand Canal.

Castello is north of San Marco and hosts an array of luxury hotels along its glittering walkway, Riva degli Schiavoni. This area has beautiful gardens and excellent, upscale shopping options. Patrons of Castello's hotels also have a share of the Grand Canal.

Cannaregio occupies a section of town north of Rialto Bridge and is home to the Jewish Ghetto and neighbouring museums. Hotels in Cannaregio are less expensive, and while they occupy an off-centre portion of Venice, visitors can still reach San Marco and Castello quickly on foot.

San Polo lies across the Grand Canal from San Marco and has less in the way of tourist services. There is a limited selection of hotels here, and as there are only three bridges crossing the Grand Canal, tourists staying in San Polo may find it difficult to access the main tourist areas. Locals outnumber tourists in this largely residential neighbourhood.

Mestre is on the Italian mainland and operates a number of less exclusive hotels that are suitable for those aspiring to see Venice on a budget. Many commuters live here and cross the bridge daily on their way to work. Hotels in Mestre are down to earth and are less concerned with extras and amenities.