The sheraton new delhi is also fairly close to some other tourist attractions that'd be quite a haul away from the other hotels (like the qutub minar)

I'd actually pick the Intercontinental Lalit - within walking distance of connaught place, so there's everything repeat everything you need re shopping and dining (lots of tourist traps too, so check tripadvisor and http://delhi.burrp.com for food options). There's also the delhi metro nearby if you want to ride to various places .. and that's quite new and nice.