your hotel budget may affect where you can stay...as i am sure yo0u have discovered HK is an expensive hotel city..

With few exceptions, all hotels have decent access to public transportation, activities, shops and restaurants. But choices will be fewer if you only limit yourself to MTR trains. And by restaurants, if you mean high-end places or not.

With your limited budget and the high hotel cost in HK, the way to look for hotel is to wait until around 3 months out, then go to Expedia, Asiahotels or other booking sites and see what's available for your budget. Then pick the least worst hotel that has decent transportation. No need to worry about specific neighborhoods, since you can usually get from one to another easily, and all areas are safe.

We really enjoyed our stay at Langham Place Hotel in Mongkok. Rates vary a lot so check them out. I thought the area was more fascinating than Kowloon where we stayed the first time. We also went on a trip to Macau and I think its definitely worth it. Try the Portuguese restaurant on the beach called Fernando - only locals and excellent food and atmosphere. The first time in HK we stayed a week and I thought that was more than enough unless you are a manic shopper. Read Tai Pan and Noble House before you go!
Have fun.

There is so much to do and see in Haong Kong, it can accommodate however much time you have (even if you aren't a shopper). I've been to Hong Kong a number of times, for periods ranging from 3 or 4 days to a week. Even with a week, I had more things on my list I wanted to do that I didn't have time for.

Let me second carrom's recommendation of Fernando's in Macau. We had a delightful long lunch there. Note that the menus are in Mandarin and Portuguese, so ask the waitperson what you should order. We wanted their famous suckling pig and she recommended the prawns and a salad of huge, juicy tomatoes. The wine list consisted of going to the entrance of the kitchen and pointing to a bottle of wine. It was the best (and cheapest) meal we had that trip!

Just want to add that hotel rates are much more reasonable in Macau than in HK. If you have the time, stay there for 2 nights, so have a full day there. You'll get a much better room for your $125 a night in Macau than in HK.

Hi,

1. Neighborhood to stay: I guess that Tsim-sha-Tsui or Mong Kok (on the Kowloon side of the city) or Causeway Bay (on Hong Kong Island)are ideal for you: Close to MTR and buses + tons of shopping, entertainment, food, hustle and bustle...

2. As far as planning your itinerary is concerned: There is a nice (and FREE) eBook which you can simply view or download, called "Top 25 things to do in Hong Kong" (Link: http://www.slideshare.net/Asia-Pacific-Guides/top-25-things-to-do-in-hong-kong ) and I think you will find it quite useful...

Enjoy!