Dresden is two towns facing each other across the Elbe — baroque and museum-heavy on the south bank, scruffy and bar-lined on the north — and since every base is on a tram line, the choice is simply which of the two you want to fall asleep in.
Altstadt — Frauenkirche and the museums
The rebuilt baroque core, with the Frauenkirche, Zwinger, Semperoper, Residenzschloss and Brühlsche Terrasse all within a few hundred metres of each other. It empties out completely once the coach parties leave in the evening, which is either the appeal or the problem.
Äußere Neustadt — the bar quarter
North of the Elbe around Louisenstraße, Alaunstraße and Görlitzer Straße: the hostels, the cheap food, the Kunsthofpassage courtyards and most of the city's late drinking. Twenty to thirty minutes on foot to the old town, and genuinely noisy on Friday and Saturday nights.
Innere Neustadt and Königstraße — the compromise
The quieter baroque quarter immediately over the Augustusbrücke, sitting between the museums and the bar streets. Roughly ten minutes on foot to the Frauenkirche in one direction and to Albertplatz and the Neustadt nightlife in the other, which is the point of it.
Südvorstadt — cheapest and most practical
The student quarter around TU Dresden, south of the main station, with lower rates and fast trams to both banks. Practical tip: book anything on tram lines 3, 8 or 11 and you can reach the old town, the Neustadt bars and the Großer Garten without ever changing.