Depends on what sort of New Years Eve you are looking for. If you are more into the being seen scene then the Standard, or Chateau Marmont (depending on your budget) on Sunset might be a good choice. That part of Sunset Blvd has tons of nightlife and clubs within a few blocks.
If you are more into the beach then Santa Monica (the Loews or Casa del Mar) would be nice.
Originally Posted by BellaG
Places to consider would be Hilton Universal Studios, where you can party on the Citywalk across the street from your hotel. There are no other hotels in that area but the Hilton.
You mean except for the Sheraton Universal directly next to the Hilton. Right?
City Walk will be a zoo and loaded with thousands of people between 2 and 100. If that is your thing then you could definitely stay at the Hilton or Sheraton.
You might also consider (if you dare brave the crowds) staying in Pasadena on Colorado Blvd. Then get up early and see the Rose Parade.
Have fun and good luck!