I would like to share with you one of my philosophies!!
When I lived in Spain we used to travel a lot to some of the most important Spanish Cities and also to the most famous European cities.
We went to Lisbon, Amsterdam, London, Rome, Paris, Florence and Venice and while I traveled that much, I learned a few things.
If you travel to a place to visit a town or a city and you know you won't spend to much time in the hotel, -- you use it just to go to sleep and take a shower --, then find a nice hotel not so expensive that is cheap, clean and with the things you need, -- a nice bed and a clean bathroom --, so in that way you can use the money for other stuff like food, tickets, wine, etc. Sometimes you can even find that perfect little cheap hotel with breakfast included, you just have to look for it. If you think we are going to spend more time in the hotel then you need a nicer place, otherwise cheap, clean and quiet will do, believe me!
For example, when we went to Florence, there were so many things to see that we got up at 8 am, get showered, eat breakfast and then went off to check all the cool stuff you can see in Florence. We got back to the hotel around 8 or 9 pm. just to fall sleep because we were so tired that we couldn't anything else. So, definitely we didn't need a big room for that, it would have been a waste.
Obviously, if you have the money to stay in a very fancy hotel and still get good food, pay all the museum tickets and anything you need, I would just say, GO AHEAD! ENJOY!!