I am in London at the moment and I would recommend the following hotel for staying in:

The Delmere Hotel in Paddington, a little boutique hotel with 39 bedrooms and a little restaurant attached. The hotel is just behind Hyde Park and Kensington Park Gardens and a short walk from Oxford street. Their website is http://www.delmerehotels.com

You have a choice of 3 underground (tube) stations in the vicinity of the hotel: Paddington Station, Edgware Road and Lancaster Gate. I do find the tube the preferred way of moving about in London because it gets you everywhere relatively quick and without any traffic jams.

Things to do in London....too many to mention, but theatres, the Tate Modern and a visit to the Docklands (Canary Wharf) are unforgettable experiences.

Enjoy!

Regards Bard Vos (in London at the moment, but living in Spain...)