I'll be visiting New York in mid-Nov with my wife.
I like to stay in a hotel that is in the Theatre District, near the subway and cost less than US$125/night (I know it's a tall order!).
Any comments welcome.
Thank you.

try the Milford Plaza through expedia or travelocity. usually comes in at about that price.b

You might want to do a search on the Milford Plaza on this site; I've seen only negative reviews here.

You can get the Park Central for $130 on hoteldisounts.com. I read here on travel talk that some one got this hotel for $100 on priceline.com. The hotel was recently renovated and is on 7th Ave. between 55th and 56th Street. The N & R train is located right next to it. I know this is about 10 blocks from the theater district, but it is a good deal.

You can try the Milford Plaza, but understand that there you are going to get very small rooms. You can also see if you can get a discount through one of the websites at the Ameritania (it's Broadway & 54th Street).

The Travel Inn at 42nd and 10th Avenue might be able to give you that kind of rate, but it's a bit of a hike and probably better not to walk around late at night (past 11 pm).