Back in the nineties I use to work as a security guard and nightshift reception clerk at a place called The Gershwin Hotel. It was a fun backpackers outfit about 12 stories high if I remember. I checked on the internet and it still exists - it even looks snazzy now judging by the photos. Have a look here:
The Gershwin Hotel. One of the many things I liked about it was it's location: 27th Street, between 5th and Madison. When I would go out of the hotel and head to 5th Ave half a block away, I'd turn the corner and there was the Empire State Building looming down on me. What a sight.
Check out the Gershwin, sky hoc. If they're anything today like they were in '92 you'll have a lot of fun. There are dorm-style rooms for $40 & $45, but you most likely want a private room. I see some going for $109 and $129. Well, it's all changed now since I worked there. Met some great people from all corners of the globe. The place is owned by a Swiss French guy and his wife, Susanne, from Quebec (he was really cool, she not so much). It looks like they still own it after all these years. I'd do anything to go back and stay there again. Damn, I love New York