No, I meant the reading room. Sad to me to learn it is no longer avalable as a reading and writing space.

I meant to add on the outside chance the original poster got intrigued by the Sanctuary House (where I have never stayed) one downside of the location is that it goes fairly dead at night, since you specified something lively.

Thank you for the great info! Nothing I see is out of my price range. I juste guesstimated a price towards an upper end although given the GBP conversion and the fact that London can be expensive, I probably misjudged. Yes, I'd like to get a great deal, and hopefully that's possible :)

One poster remarked on an authentic feel as opposed to a canned traditional feel. I'm very interested in an authentic traditional feel (not canned, not stodgy, not "shabby chic"). The Covent Garden Hotel looks great. Someone showed me the Hazlitt. That looks nice too, but I know nothing about any of these places. I like smaller hotels because it's nice to get to know the staff :). Large hotels definitely can be stunning, but sometimes they're too big to get to know the staff,

I see I have some serious research ahead following up on your suggestions. Thank you for your time!!

The Fielding Hotel in Covent Garden is not, maybe, as posh as you're thinking, but large on authentic last time I went by to have a look, and in a lively neighborhood to be sure. Maybe quirky is the word, but pleasantly so. I haven't stayed there, was one of several I considered but lots of reviews:

http://www.thefieldinghotel.co.uk/index.php

I'm not sure it has any single rooms and/or whether its single rate for a double room would be within your budget, but I had to mention The Beaumont near Grosvenor Square. My travel agent friend stayed there recently and is still raving about it. I love the location and the pre-war look!

http://www.thebeaumont.com/about

When you compare hotels, make sure you know what's included in the rate and what isn't.

I like The Stafford and Dukes both on St. James Place.