The advice of locals is certainly your best bet. For another option in HK or elsewhere, though...
When traveling far from home, I frequently use Hotel Reservation Service (HRS), a Cologne, Germany-based service that has always offered great discounts:
http://www.hrs.com or
http://www.hrs.de
The week of April 15-22, for example, HRS is showing two 4-star hotels in Hong Kong for under US$100:
**** The Panda Hotel in Kowloon $85.45 (incl. breakfast)
**** Harbour Plaza Resort City $95.10
There are many other options, too. Another nice feature is that since the service is oriented toward German travelers who expect prices to be inclusive, all taxes are in the stated prices.
[This message has been edited by Horizons (edited 02-01-2001).]