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Depending on a hotel`s primary purpose, its location is a major consideration:

Major Cities:
Look for hotels that are located in the city, close to the major points of interests. Most big cities, especially those in Europe, are `walkable` cities, being in a centrally located property, close to the main attractions, with nice restaurants in the area, etc, is ideal.

Remember, you are there to visit, so although, the price of the hotel may be slightly higher, you will save tons of money on transportation. Plus the convenience of being able to go back to the hotel easily to drop off items if you are shopping or to get ready for dinner are worth every penny.

Small Towns on Country Self Drives:
When you are visiting a country with a rent a car, the actual location of the hotel is subject to the area that you are visiting. Many times, you may wish to stay at a countryside location to have easy access to the attractions in the area or enjoy the beautiful surroundings or the property itself. Other times, it may involve staying at a small charming town. It is very important to research and make your hotel choice appropriate to the area and your interests.

One very important thing to keep in mind is parking. Check the facilities of the hotel that you have chosen to make sure that parking is offered on site. Remember, that just because the hotel offers parking, it does not mean that it is free. So be prepared for parking fees to be paid directly at the location.
Also, look into the town that you are visiting and make sure that it is easy to drive around. Many hill towns, for example, will not allow cars in the town. You will have to park at the entrance and walk to your property. Research ahead of time is very important to have a flawless vacation!

Tropical island or beach resort:
If you are traveling to a tropical Island or beach resort, a beachfront location or access to the beach will be very important. Do remember, that beachfront locations will most probably be a little more expensive. But as your holiday will be based around the beach and the property, the location and the amenities included will definitely affect the quality of your vacation.

Inland resorts:
A lakefront location or mountain-backdrop combined with access to towns or cities will make a difference in pricing.