The best place to stay in Munich during the Christmas markets would be the city center, where the markets are held. The main market is at the Marienplatz, which has a large central tree with lights and decorations. Many hotels and inns are nearby, and the area is bustling with activity and festive cheer. You can also visit the smaller markets located throughout the city, such as the one at the Karlsplatz or the one at the Stachus.