We stayed at the Hali hotel, but I do not recall if the beds were queen sized. The price was considerably lower than what you are willing to pay, which may suggest that you would not find the hotel acceptable in terms of amenities.

http://www.halihotel.com/en/index.php

yestravel, we are staying (in Oct) at Hotel Nena, gets good reviews on TA, for less than $200/night.

Thanks!

@Michael -- I'm not really into the amenities (restuarnts, spas, bars etc, just want a good location, a comfortable bed that is at least a QS, a decent sized room and of course clean. I will check your hotel out.

@xyz - we may also be there likely in Oct. and will look at Hotel Nena

We loved this hotel: www.hoteldersaadet.com/index.htm. The rooftop breakfast room has views of the Blue Mosque and the Bosphorus. It's right in the Sultanahmet and we walked to the Blue Mosque, Aya Sofia, and Topkapi Palace.

I agree with Mirmar......was just going to recommend the Dersaadet.

We too loved the Dersaadet. Rooms, location and staff were all great. Especially enjoyed the rooftop bar/breakfast area with wonderful views.

Dersaadet is right around the corner from Tash Konak. both are reasonable, old Ottoman mansions, good breakfasts and great views. T.K. has a shuttle to and from the airport and will probably give 10% discount for cash..Lira or Euros.. Don't know about Des.

I highly recommend the Alzer Hotel. I stayed there a couple of years ago and booked through venere.com. It's very reasonably priced for what you get. The rooms are a fair size (not huge but big enough for what you need on a city break) and very comfortable and clean. The staff are lovely and friendly. The breakfast is nice and you sit at the top overlooking the views of sultanahmet - beautiful.
The best bit of the hotel though is the location, you're literally on the hippodrome so you're only a couple of mins away from everything you want to see in the old area of Istanbul... the blue mosque, hagia sofia and the cisterns as well as topkapi palace ... you're also close to the shops and restaurants in sultanahmet as well as the bazaar and the park...there's also a tram stop or two nearby which is handy! I really don't think you could get a better location! and added plus is you won't ever lose the hotel as it's right by the obelisks!