Austin [1] mostly has chain hotels, but its few independently owned spots are big on charm and atmosphere. If you’re planning well in advance, book a room at one of the funky South Congress locations [2]—you won’t experience anything like them in any other city.
Most of the city’s downtown options [3] are within walking distance from the entertainment districts, so there’s no need to take a cab—in fact, you’ll probably want those five minutes on foot to eat your slice of pizza, burrito, sausage wrap, or whatever else seems appetizing enough to consume from a street cart.
Links:
[1] http://www.moon.com/destinations/texas/austin-and-the-hill-country/austin
[2] http://www.moon.com/destinations/texas/austin-and-the-hill-country/austin/accommodations/south-congress
[3] http://www.moon.com/destinations/texas/austin-and-the-hill-country/austin/accommodations/downtown