I found this lovely hotel last year for my first visit to Prague and would recommend it highly.
The hotel is fairly new and is in a wonderful location right next to the famous Loreto Church and with views of the Cernin Palace opposite
Each room is like a small suite and has a hallway , seperate bedroom and private bathroom.
Breakfast is served either in a lovely stone dining room or , if the weather allows , outside in the small garden
The hotel is well placed for many of Pragues top tourist attractions: the Castle complex is just a few minutes walk away as is the Strahov Monastery and Petrin Hill
Trams stop at Pohorelec so getting back from the city is no problem
If you're looking for a great hotel in a slightly quieter location you could do much worse than try the Hotel Loreta!