I always enjoy walking through Old Town which was where the city began in 1706. The four square block area is centered around the Old Town Plaza with its white gazebo. The San Felipe de Neri church, with its old adobe walls, was interesting to see. The old adobe homes surrounding the Plaza have been converted to shops, galleries and restaurants. Make sure you search the hidden placitas or little plazas which can be interesting to explore. I found most of the shops to be very touristy, however there were some attractive galleries with wonderful pueblo pottery. You can still see the Native Americans selling jewelry and crafts under the portals of a block-long section of the Old Town shops.
The Hotel Albuquerque near Old Town is recommended, though it is a larger hotel. The Hotel Andaluz is another great option.