I actually just got back from Montreal this morning.. I love that city.
I also particularly like the Latin Quarter. I've stayed at a couple of B&B/hostel type places in this area, and they were alright. They tend to be converted housing, and some of the buildings are fairly old and a bit run-down. I'm sure you can find nicer stuff, but I like staying in simple places because then I'm more motivated to make the most of the time in the city, rather than sitting around my hotel room.
There are lots of good bars around the city. There was an interesting place I went to on tuesday called Le Saint Sulpice, on St Denis (in the Latin Quarter). There is a huge patio in a courtyard at the back of the bar, which seems to connect to three different bars on all sides of it. Really nice for drinking beer in warm weather.
And if you want to enjoy gentlemen's entertainment, club Super Sexe on St Catherines would be an excellent choice. I've travelled up to Montreal a few times with some university friends, and we always seemed to end up at this place.
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