The most luxurious hotels such as the Duodo Palace Hotel and the Hotel Giorgione are located in the vicinity of San Marco or Dorsoduro.  For a more affordable price, the Venezia Hotel and the Novotel located in Mestre are very good options.  Finally, Venice is full of authentic and inexpensive guesthouses. Popular neighborhoods in Venice Sestieri: This is the heart of the city. You'll be staying right next to St. Mark's Basilica, the Bridge of Sighs, and the Grand Canal, as well as many other major sites. Murano: This group of islands north of Venice is well known for its master glassmakers. There are beautiful churches, authentic restaurants, and a fabulous glass museum. Giudecca: located south of Sestieri but less touristy, Giudecca is characterized by its art galleries and pretty stores. If you are looking for authenticity, this is the neighborhood for you.