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For more on marking an answer as the "Best Answer", please visit our FAQ.travel lodge on st mary's street
the bank hotel on the royal mile(near loads of pubs!!)
wavelry hotel on princes street
loads of b&bs in corstorphine which is only 10 mins from princes street
you'll love it
its one of the nicest cities with fantastic pubs and bars
go onto george street too for a night
xx
http://www.edinburgh.org/ lists accommodation - too many to name - as above names plus look at accommodation in the New Town, in East London Street, or if you don't mind city centre noise (cos its busy...) the Grassmarket. All areas close to Princes Street, but the town is centred around Princes Street and the Castle anyway, so almost anywhere you stay will be suitable to be honest.