I've stayed in this quaint hotel every time I've been home to visit New Orleans (since Katrina), and each time it gets better.
Avenue Garden is now under new ownership, and the lovely Ms. Lydia is simply awesome. She's friendly, and she cares about her guests.
She is updating/repairing the rooms, which has been a work in progress since Katrina, and I'm happy to see it.
The rooms themselves are small, but they suit me fine, as I'm not there to sleep - I'm there to visit and have fun! I'm rarely in my room. There is a nice sized TV, alarm clock, and efficient AC. If you are in a room nearer to St. Charles Ave, you might hear the streetcar pass by in the evening/morning, but to me it's a soothing sound (I'm happy they're back!). There is a computer for guest's use in the lobby, and there is now an assortment of breakfast items there, as well (this is new - it used to be just coffee) - muffins, sweet rolls, juice and the like.
There is no elevator, so be prepared to not only walk up the front steps, but to your room if you're upstairs. I request a 1st level room when I stay there.
Location-wise, I don't think there's a better deal in the city. Right Uptown/Garden District on the St. Charles streetcar line, and just a few dollars for a United into the CBD, Quarter or Marigny. It's walking distance to Magazine Street (4 blocks), and there are several excellent restaurants, bars and shops right on St. Charles Avenue, as well (Slice, Miyako, St. Charles Tavern, Sushi Brothers, Voodoo BBQ and Lucky's, to name a few).
Until I move back home, this is where I'll always stay.
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