Since passport formalities no longer exist on the border, it doesn't matter which side of town you stay on. Most of the main tourist sights are on the Polish side, but the most useful railway station is on the Czech side. The pickings are slim when it comes to eating, but the hotel Liburnia has an excellent, informal pizza restaurant, and there are several cafes and small restaurants along the Rynek on the Polish side where you can grab a quick bite or drink.
Note: This information was accurate when it was published, but can change without notice. Please be sure to confirm all rates and details directly with the companies in question before planning your trip.