When booking a hotel you need to consider what you are wanting it for. Obviously you are most likely booking a hotel for somewhere to sleep and to store your belongings whilst on holiday or on a business trip but how much time will you be spending at the hotel? If the hotel is simply a place to get your head down as you will be out most of the day and evening, then I would suggest a budget hotel that has good reviews in terms of noise level and comfort. If you are looking for a place where you can relax, perhaps have a Spa, stay for lunch or lounge about in your room for an afternoon, then facilities may be of more importance.
If you are planning on doing a lot of local sightseeing or are attending a business event in the town or city then you will mostly likely want to be close by to allow you the shortest travelling time. You may find you have to pay a little more for the convenience of being within the town or city but you may well save this on other travel costs.