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Where to stay in Germany is a matter of taste.  If you know or are friends with some Germans you will probably have the best experience staying with them.  If you aren’t as lucky, Pensions and Hostels are a great place to stay.  They are an inexpensive alternative to a hotel and the atmosphere is often more homely.  Be advised that you may have to share a bathroom.

The Hotels in Germany are very nice and also expensive.  They are usually easy to get to and quite comfortable.  You also will not have to share a bathroom.