Over new year just recently I stayed in the Park Central hotel which is situated very conveniently on 7th Avenue between 55th and 56th street. It is listed as a 3.5 star hotel though some guides put it as a 4 star. It cost my wife and I for a week �830 which was for room only.
Check out www.edisonhotelnyc.com. I've stayed here before and its perfect and with a reasonable price. Its about 27 seconds from Time Square and the Godfather Part 1 was filmed in its lobby. I 100% recommend this hotel and the next time I visit New York I will stay here.
http://www.hotelpenn.com/
- excellent centrally located hotel, 3 stars but better than most 3 star hotels in NY. Rooms start at $99 a night which is very cheap.