First of all, is the BA flights+hotel option *really* yielding better rates than booking separately? I'm so used to seeing the exact opposite on the various airlines' package sites - it's inevitably more money than booking each piece separately using optimal rates/codes for each. So if you're dead-set sure this is an optimal deal, then I guess I'll just say "good for BA" - I'm genuinely surprised.

Second, in Europe I usually love the small boutique independent hotels as they're usually far less expensive than the global brands. Since these places usually don't have the concept of elite status, you aren't really disadvantaged by being a first-time guest at one. However, Flyertalk has long loved the Hilton Old Town in Prague, so this is I'd probably want to try out as a Diamond.

Just out of curiosity, what was the price difference between the package and booking separately?