Dam Square Hotels
Dam Square serves as a great pinpointer to the very centre of Amsterdam. While the square is interesting, it's likely that you will spend much more time in the area around Dam Square as most of the best bits of Amsterdam are off the square along the canals.
Imagine Dam Square as a big open space with a monument in the middle, surrounded by historical buildings and populated by pigeons. It's great as a central spot but it's not an area of great interest. It's much more interesting and fun to explore the canals and byways that criss cross the city.