There are some other places to search for hotel value in New York. Try a few of these links:
For years, Apple Core Hotels have provided reasonable value for Manhattan travelers. These chain hotels offer good locations and prices that are in the $155-$275/night range for a double.
Are you willing to consider a New Jersey stay? Some parts of Jersey are actually closer to midtown than points on the island itself. StayInTheMeadowlands.com links 23 chain hotels in the region. Consider the distance and accessibility to public transportation as you plan. There are light rail and commuter train options available at reasonable prices. Do not consider driving into the city, where parking and traffic are not likely to resemble what you're accustomed to at home.
Looking primarily at hostels? Try ny.com's geographically arranged listing.
About's Guide to New York City for Visitors has listed 10 cheap hotels that generally go for less than $150/night. If that's too rich for your blood, there is also a link to recommended hostels.
About's Hotel Guide also has a cheap NYC hotel list for your consideration.
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