This might be dated info, but I really regret not paying a bit more to stay more central in London. When I was there in '06, the tube only ran until 11 or 12pm. I chintzed and payed for a hostel a few more stops down the line (to save a few pounds), and subsequently had to leave the nightly festivities earlier, to ensure I'd get to the hostel before lock out. If I had a do-over, I'd spend the extra cash to be within walking distance (or even taxi distance) so that I could really enjoy the nights.
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