The New Chelsea Cloisters Hotel is a three star hotel, not with the very best location in London, but still a good starting point if you plan on using public transportation to get around. You might save some money staying here compared to much more central hotels at least. The closest metro station is South Kensington which is 6-7 minutes away from the hotel. If your goal is simply to live in nice surroundings, and do not need to many services inside the hotel, this might be a nice hotel for you.
New Chelsea Cloisters ***
Sloane Avenue, Chelsea, SW3 3DW London
New Chelsea Cloisters pictures