Just use Groupon/SniqueAway/LivingSocial/TripAlertz to find a good hotel for a decent price in NYC. I live in Manhattan and don't understand why tourists insist or even consider staying in Times Square... it's a zoo.

Consider boutique hotels: NoMad, Jane, Ace, Standard, Gansevoort, Dream, Giraffe, St Giles, Library, Sanctuary. Andaz on 42nd is pretty good and has great location.

Another suggestion is to use Hotel Tonight app. You can only book 1 night at a time, but I see the same hotels almost every night and most of them are under $300.