@noel
Its very hard to recommend a place as expections and prices have many levels..But if you say, must be economic and close to the touristic part, I can write 1 at sultanahmet, and 1 at Taksim, both approved by my foreign friends several times..
If you are planning to stay at Sultanahmet which is the center of touristic İstanbul, can recommend antique hostel for a cheap solution and silent street..Roof is excellent..
Antik Pansiyon Istanbul Sultanahmet - Ucuz Istanbul Pansiyonu
Around this one, many hotels available with different qualities and prices serving to all levels of budgets...
This is the top hill area very close to st.sophia so you will not need to walk uphill to the center every day..
Parking is a problem but 2-3 bikes always park free in front of this building and there is a private parking lot very close..You will see it while walking down between blue mosque and sultanahmet park.
If you have to visit some consulates at the bosphorus area, can write another hostel close to Taksim Square so that you can reach embassy buildings in bosphorus area by 1 bus line..
Arch-ist Hostel - Beyoğlu / İstanbul
Booking online for both ok.
Hope helps...
All the best..
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