Originally Posted by DavidO

Best "under $400" luxury hotel in New York is the Ritz-Carlton Battery Park. You can get a guaranteed upgrade to Club and third night free through March 31, 2011. With Virtuoso, you also get a $100 F&B credit and daily continental breakfast in the restaurant or via room service.

It's not in the area you've mentioned, but is very convenient to the subway - 15 minute express train ride up to the Central Park area.