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Decent Budget hotels with AC

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What started as a mom and daughters trip for the NYCDA Dance convention is now turning into a family trip. The original plan was for only 3 of us but now, my husband and two other children will join us (6 total now), which puts us in that very tough category of finding a family suite or two adjoining rooms that will not break the bank.
The dance convention is July 2 - 9 at the Sheraton at 811 7th Ave. We are considering two things - 1. The girls and I staying at the Sheraton or very close to it while and dad and the boys staying close by at very budget hotel or even hostel/hotel within walking distance to say (they state that they do not care and only need AC and a bed).
2. Trying to find a family suite to fit 6 that will not cost more than actually getting 2 standard hotel rooms.
I very much prefer being within walking distance of the Sheraton. Any suggestions?
The only thing that really matters to us is clean, decent, and with a well working AC.
PS I have already checked into Radio City Apt (we stayed there in Feb.) but they are fully booked for July 2014!

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