Baku is expensive, locals exploit the limited accommodation options and wealth gap to obtain high rates. In the Old City, we found Old City Inn to be comfortable and helpful, at ~$140/night for a double.
Restaurants:
Karavan Sera was an overrated but decent Azeri meal in the Old City. Beyrut provided a delicious Lebanese dinner.
Sights:
Be warned there are no tour agencies or operators in Baku, so sightseeing outside Baku needs to be arranged through independent negotiations with taxi drivers, or via hotels, which tends to be very expensive (we were quoted $350 to go to the mountain village, and $200 for car & driver to go to the main sights within 100km of Baku). I do NOT recommend renting a car and driving yourself, as local traffic is crazy, police are over-enthusiastic, and most sights are well off main roads and not signposted.
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