Agreed - hotel occupancy in NYC is very high and prices reflect this. No way you will be able to get a $125 price. You might want to look into the new Holiday Inn Express in midtown - stayed there recently at an excellent rate and it's in a great location.

http://www.tripadvisor.com/Hotel_Rev..._New_York.html

You want to fly into JFK, not Newark.

I have found hotel prices to go up during the holiday season in NYC and they are hard to find. Get your reservations locked in asap.