Hotels in/near L.A. have gotten more expensive in recent years, so it's harder to find $160/night, especially in high tourist season. I would consider expanding my search to hotels in Arcadia, just east of Pasadena. There's a whole cluster of them there: several Hilton-chain ones, i.e., Hampton Inn, HGI, Embassy Suites, plus Marriott's Residence Inn & Springhill Suites (plus Courtyard in nearby Monrovia), plus... forget what else offhand, but you get the idea.

As these hotels are mostly clustered together, they are mostly within reasonable walking distance (~10 min.) of the Gold Line's Arcadia station. It's a pleasant enough area, with plenty of good restaurants/shops/services within walking distance along Huntington Drive. (Also nearby are Santa Anita racetrack -- famous/infamous these days, L.A. County Arboretum, big mall, etc.)

Yes, it'll take a bit longer to ride the Gold Line to DTLA (and other points) from Arcadia than from Pasadena, but you may find hotel prices a bit softer, so the tradeoff may be worth it. The ride is mostly aboveground on that route, and it's actually rather scenic, IMO.

Also, opaque booking options (Priceline, Hotwire) may be helpful in finding cheaper hotel rates.