I stayed at the Hotel Queen Elizabeth a year or two ago and it was good. You can walk to a lot of good places from there (if you don't mind a bit of a walk). I walked to Old Montreal, as well as Ste. Catherines (numerous times) and Crescent Street.
I can't say that I recommend Crescent Street...it just wasn't my cup of tea. Its a fantastic city though and in some ways you just can't go wrong!
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