I stayed at the Hotel Belletini while in Florence. It has a neat history (being a hotel for the past 300 years, and a street from the 1300's - but that's everywhere in Italy). People were very friendly, and its only 2 1/2 blocks from the Duomo. If I recall, the price was $120 US for a double. Huge double room (by Italian standards) with hardwood floors. Small shower/bath/toilet.

For anyone not concerned about curfews and hotel services, there always Convents and Monestaries. I stayed at a Convent for $75 CDN/night in Rome in 1999. Great when you are really there to see everything but your room.