The Old Town occupies the ridge of volcanic rock running from Edinburgh Castle eastward to the Palace of Holyroodhouse — a narrow spine of medieval and 17th-century development that accumulated vertically (in the famous tenement 'lands') because horizontal expansion was impossible. The result is Europe's most densely layered historic city quarter, where a 30-second walk can take you from the 21st century to the 17th.
For hotel guests, Old Town location means immediate proximity to the Castle, the National Museum of Scotland, Greyfriars Kirkyard (famous both historically and for its literary connections), and the string of whisky bars and traditional pubs along the Royal Mile. The Grassmarket — the medieval market square beneath the Castle — has become one of Edinburgh's best eating and drinking destinations.
The Witchery by the Castle is Edinburgh's most celebrated Old Town hotel — a suite-only property in a 16th-century building with the most theatrically Gothic interiors in Scotland, used extensively by celebrities and for honeymoons. It's a statement stay rather than a practical hotel.
More broadly, Old Town hotels vary considerably in what they offer beyond location. Properties on or near the Royal Mile itself are within genuine walking distance of most sights but can be noisy during the Festival (August) and busy with tourist foot traffic year-round. Hotels on the slightly quieter Grassmarket and Cowgate have better evening atmosphere with fewer coaches.
Key consideration: Edinburgh's Old Town is on a steep hill. Some hotels involve significant stair climbing to reach upper floors, and navigating between the Castle end and Holyrood end involves a 30-metre change in elevation. If mobility is a concern, verify lift access and room location carefully.
August is Edinburgh's Festival month — hotels triple in price, the city fills with performance and theatre, and the Old Town becomes a world-class arts destination. Book 6–12 months ahead for any August stay. The rest of the year the Old Town is pleasantly uncrowded, with May–June and September the best weather months.