Prague Castle
With the exception of the hotels close to Novy Svet, all Prague accommodation listed here is no more than a 5 minute walk from the Prague Castle main entry. Most accommodation is in the Prague luxury range with only a couple of "3 star" exceptions. Many of these are "residences" or "suite hotels".
Most Prague Castle hotels are located either on the steep hill climb from Malostranske Namesti (Nerudova). Half of the "Castle Steps" apartments are in the following road called "Uvoz". The top area of Prague Castle (Pohorelec - location of the Strahov Monastery) is served by trams 22 and 23 that stop at the rear entry of the castle and at Pohorelec. The rest of the Prague luxury accommodation is behind Prague castle around Novy Svet. Nerudova has the concentration of bars and restaurants but Loretanska (the road that links Pohorelec with the castle) also has a couple of bars and restaurants that overlook Petrin Park.
All Prague accommodation descriptions are based on my own independent assessments. On this page you'll find the webpage of the accommodation concerned and there are also links to Trip Advisor where you can read the description supplied by the accommodation itself plus photos and comments by guests who have already stayed there. There are also options for making bookings if you decide to make a reservation.

My list of Prague accommodation in the Prague Castle area
5*.
Hotel Savoy. This is one of the original five star Prague luxury hotels here. It was a great location for politicians to stay with it's close proximity to Prague Castle and Foreign Ministry. Now with all the other new 4* and 5* options in the Old Town it's a bit further down the list. Often seen on "priceline" for last minute deals. Prague hotels may offer local Prague deals so their homepage is at www.savoyhotel.cz.
5*.
Santini Residence. This is a recent addition to the five star Prague luxury hotels list but, it's made a running start. Small place (8 suites plus an "executive" room) ranging in size from 40 to 70 square metres. Made it into the Prague accommodation top 20 after only two years. Not heard a bad word about it. Prague hotels may offer local Prague deals so their homepage is at www.santiniresidence.com.
5*.
Crowne Plaza Prague Castle. This is attached to the Strahov Monastery complex. Opened in 2007 occupying a 16th Century building with extensive modifications (I think they left about 10 original bricks). 138 airconditioned, 25 square metre, no-smoking rooms (some connecting) and suites all with high technical specifications. Ten minute walk to Prague Castle and a 35 minute walk to the Old Town. Unless you want to walk up the hill you'll be using the 22 or 23 tram or taxis. Not as expensive as you might have thought. Prague hotels may offer local Prague deals so their homepage is at www.cpcastle.com.
5*.
Golden Well Hotel. For me it's the best of the Prague luxury hotels, set to one side of the Prague Castle landscaped gardens at the end of the road from the Czech Parliament. Twenty rooms in total. Friendly and professional staff. Prague accommodation with views. The top floor breakfast room and restaurant have panoramic city views. In the Prague accommodation top 20. Sister hotel of the Aria in Mala Strana. Recommended. Prague hotels may offer local Prague deals so their homepage is at www.goldenwell.cz.
.... thanks for the tip about room 5, stunning view .... 
4*.
Hotel Domus Henrici. This is one of the smallest Prague luxury hotels based on room number. There are only eight here, all luxurious ranging from double to suite. Rear facing rooms overlook Petrin Park and the garden is popular for breakfast in all but, winter months. Often associated with keywords like "charming, romantic, excellent hospitality etc". I guarantee you'll know the names of the staff on your first day. Personally recommended. Prague hotels may offer local Prague deals so their homepage is at www.domus-henrici.cz.
4*.
Hotel Golden Star. One of the older hotels in Prague located right on the Nerudova/Ke Hradu junction. Best rooms are front facing (with Prague Castle and city rooftop view). Second best rooms face the "Uvoz" side of the street (higher floors have Petrin view). Public restaurant/bar. One of a small group. Prague hotels may offer local Prague deals so their homepage is at www.starshotelsprague.com.
4*.
Hotel U Brany. Located halfway up Nerudova on the way to the Castle. Looks big from the outside because of the public restaurant/bar but, upstairs the hotel consists of only 10 room/suite combinations. Perfectly nice hotel with friendly staff (and owners) but, if really professional service is your thing then check Domus Henrici first. Nice rear courtyard. Slick marketing in that it gets the "old Prague" in the webpage but, is not in the "Old Town". Prague hotels may offer local Prague deals so their homepage is at www.ubrany.cz.
4*.
Hotel Golden Wheel. Also known as U Zlateho Kola and is most often associated with "great little hotel". Wrong side of Nerudova to take advantage of rear facing courtyards overlooking Petrin but, makes up for it with "over-sized" rooms for the four star hotel class, modern facilities and style approaching one of the Prague luxury hotels. What I would call a "modern romantic hotel". Prague hotels may offer local Prague deals so their homepage is at www.thegoldenwheel.com.
4*.
Hotel Monastery Garden. Located in the Strahov Monastery complex. Only 12 rooms, very friendly staff. Recommended for those wanting room space. Reserve rooms on the second floor as the third floor is under the roof and has no windows. You'll want to use the tram 22 or 23 after the first day otherwise you have the hill walk. Prague hotels may offer local Prague deals so their homepage is at www.hotelmonastery.cz.
4*.
Hotel Neruda. This is a 10-15 minute walk from the Charles Bridge and 5 minutes to the castle. One of the four star hotels in Prague, this place was built nearly 150 years before America was discovered and can suffer from the "small room" syndrome often described as "cosy" but it does meet the requirement for Prague luxury hotels. Prague hotels may offer local Prague deals so their homepage is at www.hotelneruda.cz.
Find the best deal, compare prices and read what other travelers have to say about hotels in Prague.

4*.
Hotel Questenberk. It has 26 rooms but I only recommend it for room 406 with it's panoramic Prague view. Don't expect the staff to be falling over themselves to be friendly. You'll want to use the tram 22 or 23 after the first day otherwise you have the hill walk. Not one of the Prague luxury hotels but, fairly close (lacks the service). Prague hotels may offer local Prague deals so their homepage is at www.hotelq.cz.
4*.
Hotel U Raka. Located at the far end of Novy Svet. It's also known as "Romantic Hotel U Raka". It's a very quiet area. The nearest tram stop is only a 3 minute walk. You would have about a 35 minute walk if you wanted to go to the Old Town Square. Fabulous "Superior Luxury" room which could easily make the Prague luxury hotels status. Perfect for those not liking crowds. Prague hotels may offer local Prague deals so their homepage is at www.romantikhotel-uraka.cz.
4*.
Red Lion hotel. Located towards the top of Nerudova and is opposite the Hotel Neruda. It has been recommended for as long as I've lived here. Quite large rooms (one of the top floor rooms has an attached attic room which sleeps another two people). Front facing rooms have the castle view but, can be a little noisy at night. Rear facing rooms have the city and Petrin Park views. Friendly staff. Was considered one of the Prague luxury hotels of it's time but, now slipped a bit. Personally recommended. Prague hotels may offer local Prague deals so their homepage is at www.starshotelsprague.com.
4*
Hotel Green Lobster. Also known as U Zeleneho Raka. Located right at the top of Nerudova as you turn to go up to the Castle (next to the Red Lion hotel). Best to book as far in advance as possible to get a good deal. Standard double rack-rate can come down by 75% off-season. Part of the Garzotto group that operates 4 hotels here. They have a standard/deluxe/executive room spec with the only difference being whether you want air-con and/or DVD player in the room and a bit of extra space. Prague hotels may offer local Prague deals so their group homepage is at www.garzottohotels.cz.
4* Hotel Pyramida. An old 1970's Superior that got a huge facelift to make it a modern 4 star hotel but based largely on the size of the place rather than the service. 354 rooms (mostly doubles) are clean, smart and fairly spacious (superior class) but cannot be called stylish. Most easily accessed via tram 22 or 23 which stops outside or else use taxis. The castle is about a 10-15 minute walk. Great views from the upper floors and great value for weekend stays where you can get a suite for the same price as a room in most hotels of this class. Only the location lets it down a bit. Prague hotels may offer local Prague deals so their homepage is at www.hotelpyramida.cz.
3* Hotel Loreta. Located next to the Prague Loreta opposite the Foreign Ministry building it has 10 rooms (9 are doubles) and two of the doubles are big enough for an extra bed. It's a three star but could easily upgrade by increasing the room spec and services so I expect it won't be a 3 star for long. Nothing particularly in the area after dark except two or three restaurants so expect to be walking a lot or be prepared to take the tram to cut out the hill walk. Hotel decor is elegant and smart. Discounts for staying 4 nights or more. Prague hotels may offer local Prague deals so their homepage is at www.hotelloreta.cz.
3* Hotel Aureus Clavis. Nice name, it's the Latin way of saying Golden Key. Renovated in 2007 but, many old features including parket flooring were kept where possible. Located high enough up the road called Nerudova that leads up to the Castle to be listed in this section. All rooms en-suite. The "Standard" doubles are considerably larger the the "Economy" doubles but that said I think the Economy rooms are good size/value for the area. The road is lined with tourist shops and restaurants. Look out for special offers and discount is offered for staying 3 nights or more. Prague hotels may offer local Prague deals so their homepage is at www.aureusclavis.cz.
.... our budget stretched further thanks to your guide ....
3*+
Hotel Jeleni Dvur. Nice hotel but I recommend it only for the rear facing rooms which have great views over Prague. The hotel is located away from everything and you should buy a travel pass if you want to stay here as you'll not be wanting to walk up and downhill all day. Novy Svet is a 5 minute walk. Prague Castle entry would be a 15 minute walk. The Old Town and Wenceslas Square would be a 45 minute walk (mostly over cobbles). Part of the Euroagentur group. Prague hotels may offer local Prague deals so their homepage is at www.hotel-jeleni-dvur.info.
3*.
Castle Steps. The Castle Steps apartments are located in various parts of Nerudova and the road it leads into called Uvoz. Nerudova is the hill leading up to the castle. Great deals for room-only. The Uvoz apartments are personally recommended. Prague hotels may offer local Prague deals so their homepage is at www.castlesteps.com.
3*.
U Zlate Podkovy. Also known as the Golden Horseshoe. Operated by the Jerome group. 12 self-contained apartments mostly doubles but some sleeping up to 4 people. Located in the lower half of Nerudova with a public restaurant attached. The suites on the third floor attic are the biggest and have the best view. Be very clear when asking if the price is per suite or per person. Prague hotels may offer local Prague deals so their homepage is at www.uzlatepodkovy.eu.
3*.
House at the Golden Tree. Also known as Dum U Zlateho Stromu. There are a few "Golden Trees" in Prague. I recommend only the "Novy Svet" option. Only 4 rooms but they are huge rooms, unbelieveably spacious. A bit out of the way being about a 10 minute walk to the Castle and maybe 35 minutes to the Charles Bridge, but well served by tram 22 and 23. Great little place. Prague hotels may offer local Prague deals so their homepage is at www.goldentree.cz.
Old Town - Wenceslas Square - Mala Strana
Castle - Ujezd/Andel - Namesti Republiky - Other Areas - Apartments/Residences