8 friends and I went this year and had an absolute blast. I would stay somewhere right near or in the French Quarter. We stayed at the Sheraton on Canal St and enjoyed the location and the hotel. Hotels are pretty pricey for Mardi Gras so I would book soon if you can. I would order beads/flashy lights from Amazon.com and have all of your stuff shipped to the hotel. There are balcony parties, it's really up to you if you do them, they can be fun but it's mostly for the newbies, most of the action happens down on the street.
New Orleans is nuts, it's the craziest party you will ever go to, some people can't handle the Vegas but New Orleans is worse, you will be partying 24/7 as the bars are open 24 hours.
I would watch your bags for pickpockets, a couple friends of ours got pick pocketed.
The food in New Orleans is unreal so make sure you go and check out as many restaurants as you can!
Feel free to ask any more questions.
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