V for Verdict

The jury has considered all appeals and has chosen the right city to be...
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[end DRUMROLL]

VIENNA!

And the hotel is indeed Hotel Kaiserhof, just like the sharp eyes of Kaj noticed. Excellent work. "Grüss Gott" to everybody from Austria.

Some explanations:
The receptionist spoke French on the telephone to a French-speaking guest, but used German in speaking to us.
Princess Elizabeth was married to Emperor Franz Josef with the magnificent beard. Her nickname was Sissi. Some of the trams in this city are old but there is also an underground with lines U1, U2, U3, U4 and U6. One has to wonder what happened to line U5? The tram stop shows the Austrian colors in the middle of it. Stefan recognized Karlskirche with the blue cupolas.

And if you still don't believe, here a few more pictures from the once imperial Austria.

The proud Austrian flag!

Imperial beer!

A new competition: name as many famous Austrians as you can!
For extra credit, which Austrian composer wrote this hilarious piece of classical music?
Ti-di-di ti-di-di ti-di-dittittii. Ti-di-di ti-di-di ti-di-dittittii...
(Tip: It was named after an Austrian Field Marshal.)