Fourpoints Lakeshore
I needed a few stays last year to requalify for platinum so I stayed at four points lakeshore about 5 times. I will agree, it is certainly not in the core, but the area is reasonably safe (I left my Jeep, topless, during the summer and no problems x 3 nights).
The hotel is run-down and needs some work but I believe they recently redid a few of the floors and are doing more/ongoing.
Restaurant isn't much to speak of but the staff are hardworking and friendly.
No significant upgrades or otherwise but rooms are cheap, occassionally you can get a room for $85 - 100 and often @ $125/night.
Not close to the subway but does have good access to the major roads (DVP and Lakeshore specifically).
If you're going to stay this far outside of the city, you may want to consider one of the airport hotels, also dirt cheap.
For me, in Toronto, King Edward is the best bet. Great location right next to the historic Albany Club of Toronto.
Enjoy TO.