In Salzburg we stayed at the Weisse Taube, a small boutique hotel, in Old Town just three blocks from the Dom square and Christkindlmarkt.
main Christmas market in Old Town Salzburg
baubles at the Christkindlmarkt
Though located just off the main fare, it was very quiet at night and the room itself was comfortable and clean. We had two twin beds pushed together with individual comforters (very popular in Austria and Germany), a desk, chair and tiny television.
Also included in the room price (~$115/night) was a full breakfast with as much bread as you could eat in the morning accompanied by cheeses, meats, spreads, yogurt and granola. My soft boiled egg was free but Eric upgraded to scrambled for an additional 2€ each morning. [Eric's note: well worth it]
gluhwein stand steps from our hotel
The front desk folks were also very helpful, ready to recommend a place to eat or directions around town. One staff member even gave us a free hour of internet so we could call our families on Skype for Thanksgiving.
My one gripe about the place was the bathroom. Overlooking the 70s-era bright yellow color (wish I had a photo to put here!), the shower was actually difficult to use. We’ve experienced a few tiny European bathrooms, but the shower head wouldn’t support itself, so you had to hold it to get any water on you. Plus, the hot water was more like warm at best.
Overall, if we returned in the winter I would stay here again as the location and value were hard to beat for the holidays.