We stayed here.
Downtown New York Hotels | Hotel 17 New York City NY
It was on 17th and 3rd so very handy location in mid town. And very cheap for NYC. Woody Allen filmed in the hotel for Murder in Manhatten.
Very basic with shared bathrooms (never was a problem). They have a sister hotel also which is nearer Madison. It may be hotel 31 from memory.
Also here is a great list of things to do, my mate sent me. It was a good list.
Have walked past this hotel many times. You're very near to good parts of town. Basically you want to head downtown to East Village, Lower East Side, Soho and West Village. That's where you'll find cool bars and in Soho Joanne will find good shopping.
You basically want to be south or east and west of Washington Sq Park when drinking and or shopping and exploring. Best thing for you to do is spend half a day just rambling around this area -- dead difficult to get lost because it's all a grid.
Bars to go to down there include:
Fanellis Café (my favourite) on Prince and Mercer -- also Mercer Hotel bar is opposite and that's pretty cool
Spring Street Lounge -- on Spring Street
Corner Bistro -- 4th St / Jane -- best burgers in New York (heart of the East Village, proper Bob Dylan 60s style area
Coffee Shop (Union Sq West) -- good food / great milkshakes / fittest waitresses in NYC
Babbo -- best restaurant in New York -- 4th St in West Village I think. I'd think about booking now. It's dear but well well worth it. Probably best restaurant I've been to
Cocktails in Gramercy Park Hotel (Gramercy Park)
Half a day walking round Central Park -- BEAUTIFUL!!
Fricke Gallery -- best collection of OLD MASTERS anywhere -- 70th st and 5th Ave
Walk over Brooklyn Bridge at sunset or dawn
Gotham -- great restaurant on 12th st between 4/5 aves I think. Try the chocolate martinis!
In April you might be able to catch the Yankees or the Mets at start of baseball season as well
Visit to Harlem for some soul food!
Old Town Bar (classic old style NY bar) -- 18th or 19th St and Madison I think -- anyway, about a block from your hotel. Burgers also mint. As is Old Town Ale.
Take the Staten Island ferry -- nothing to see there but view of South Manhattan and Stat of Liberty is awesome
Go up Empire State building at sunset and watch all the lights coming on. AMAZING
And finally, every good English pilgrim has to visit the Dakota Building (72nd st and Central Park West I think) where Lennon lived and was shot and then walk into Strawberry Fields in Central Park and leave an offering at the Imagine mosaic.
Enjoy mate!