There are no cheap places to sleep in New York City. Repeat this mantra until you have learned it by heart, and then keep reading.
It is possible to find accommodations for around $100 a night, but you will have to book them well in advance. New York City is high season year around, so hotels may be full at any time. Don't count on going into the city and finding something once you're there.
For chain hotels, check discount websites such as Travelocity and Expedia.
That said, there are a few other options that you may want to consider.
Mini-Hotels
A few 19th-century townhouses in the city have been converted into charming mini-hotels. Always less than 10 bedrooms, usually only three or four, they are the city version of a pleasant B&B. Rooms are generally petite and bathrooms shared, but many have a fully furnished kitchen available to guests, which can save you hundreds in restaurant food. A clear example is Second Home on Second Avenue, where you can choose from one of their seven themed bedrooms, ranging from the Caribbean Double to the Skylight Room. Prices start at $80 and they are always booked, so plan well in advance.
Get out of Manhattan
Staying in one of the outer boroughs will give you a much better deal for your money. Long Island City, a mere 10-minute subway ride to midtown Manhattan, is a pleasant Queens neighborhood with a few good hotels and a lot of terrific Greek restaurants. The Comfort Inn Long Island City Hotel is a good example –You get all the amenities of a big hotel (complimentary breakfast, exercise Room, airport shuttle) for much less than you would pay in Manhattan. Rooms start at $99.95.
Hostels
If the word hostel conjures images of communal dormitories with stark beds, think again. Many hostels now offer private rooms that in many cases are prettier and more comfortable than overpriced hotel rooms. The Chelsea Star Hotel (it's actually a hostel; don't let the name fool you) is a clear example –They have regular dormitory rooms where you can rent a bed and share the room with strangers, or you can take one of their private rooms. Private rooms vary from artsy singles and doubles to lux (with canopy beds and private marble bathrooms). Feeling whimsical? The Chelsea also has themed rooms, including a Madonna bedroom (the singer lived here in the '80's) and a Japanese room. Prices start at around $90.
B&B
Fireplaces, four-poster beds, antiques and high ceilings… Hard to believe you're in the heart of the city. B&B have become popular in the last few years as a response to high-priced hotels. Some of them offer private rooms while others work more as a small studio apartment. Country Inn the City B&B is an example of the second. Any of the four mini-apartments in the building comes complete with its own private bath and kitchenette (one of them even has a terrace). Prices start at $150.