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The best depends on your expectations of your visit to Istanbul, what you have already seen of Istanbul and why you don't want to miss during your visit. However, the most popular area to stay is in and around Sultanahmet. Many don't get to see other places as most of the popular attractions are here, including the Hippodrome, Blue Mosque, Hagia Sophia and Topkapi Palace.
The second and increasingly popular, generally speaking more expensive, area is Taksim area. The public transport to Sultanahmet very easy. It does not take more than 15 minutes by taxi from Taksim to Sultanahem, though I suggest to walk via, Tunel, Galata, Karakoy, Galata Bridge and Eminonu. This walk is delightful and should not take more than 45 minutes.
Alternatively, you can indulge yourselves in one of the more, much more, expensive accommodations along the shores of the Bosphorus, which is the strait divides Istanbul in two and connects the continents of Asia and Europe?
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