Actually Times Square is NOT great to sightseeing. There are a lot of theaters nearby, a lot of high rise office buildings and lot of shops selling stuff nobody wants (M&Ms?) and bad chain restaurants at very high prices. Much better to stay near Central park South or est midtown. If in west midtown definitely keep off of broadway.

I found on the website that Kitano NY, Michelangelo, St.Giles, W NY (Midtown East & Union sq), The James, are all listed under $500 per avg. night with your scheduled dates. The Place is slightly high at $516 but I don't think this is the tower room. Of course, you have to add tax too.

I personally found two hotels in Chelsea charming. One is Eventi, another is Indigo (this is chain, and I like Indigo hotels). Although location is a little off (28th-30th on 6th Ave, not lively area), but subways near-by. Eventi have two queen size beds in 300sq ft room for under $500. Indigo is cheaper.

I have spent alot of time looking at all the hotels suggested above. Thank you to everyone for taking the time to post.

The hotels I am now considering are:
1) Westin Times Square - unfortunately the rates being offered for a 2 bed room at the moment are non-refundable so cannot reserve a room.
2) The Kimberly - Hotel will not guarantee the bed configuration which is of some concern. Also unsure of the location.
3) The Muse Hotel - the rate for a 2 bed Executive room is good
4) Beacon Hotel seems good value for money - a little lower in standard to some of the above.
5) New York Palace

The Beacon is in a completely different class from the others - and a completely different area. the upper west side is a mid/upscale residential area very close to Central Park and many of the major museums. The Avenues are lined with tons of good inexpensive/moderate neighborhood restaurants of every possible ethnicity and there are 2 subway lines to take you to other parts of Manhattan easily and quickly. (note: residential doesn;t mean quiet, the streets are still busy and many of the restaurants have sidewalk cafes - but will probably be too chilly for that when you're here.) The hotel was redone recently and has large rooms - but is more a 3* place (US 3*, not a european 3*) than a luxury place.

Many people have been very happy staying there - but if you are trying to come close to luxury - the Beacon won;t have the details you're looking for.

I'd also put the Kimberly in the 3-star range as it doesn't have a restaurant and isn't that fancy. But it has a good location in east Midtown, and the rooms tend to be large.

The Palace is a luxury hotel (5 stars), so that's why it's more expensive ... despite the sometimes mixed reception it receives from travelers.

I'd certainly choose the Intercontinental over the Westin. I find the Westin's location to be too crowded and annoying, and it's just not as good a hotel as the Intercontinental (The Barclay in east Midtown is also an Intercontinental hotel, but it's older and not as modern, but still nice). But the Eventi is a brand-new, really nice hotel and ought to be on your list.

I looked at the Eventi but for a 2 bed room it is outside my budget so it had to be taken off my list. I also really liked The Benjamin however no 2 bed rooms to be had.

I have google mapped the Hotel Beacon and the area it is in does look nice. Don't laugh but I have always wanted to visit an American Supermarket (I have seen photos of your candy isles!!!) so I like the fact there is one across the road.

Fairway is not just any supermarket - it's an attraction itself. I could spend hours there, and I hate grocery shopping!

If you want to see a super gourmet store head to Zabar's - Broadway and 80th. It's incredible. they have one guy whose sole job is to slice the lox. Also - upstairs they have a fantastic kitchenwares dept.

Note; neither of these is a supermarket in the american sense - we don;t have really big ones in Manhattan - since rela estate is just too expensive. The ones in the suburbs are twice the size of those in Manhattan. Probably the closest you can come to a real american supermarket in Manhattan is the Food Emporium - and there are a couple on the upper west side.

Zabar's and Fairway are virtually next door to each other. Hotel Beacon has the quietest rooms I've ever slept in. It definitely isn't a budget choice but it's definitely not luxury either. I guess it's similar to most people's homes! .
It is good value for the money. I've stayed all over the city and this is one of my favorite places for all the right reasons:
1. Price/Value/Comfort of Rooms
2. Location
3. Convenience to transport

May I ask what is 'slicing the lox'?
Zabar's sounds like my kind of place so it is going on the list of things to do.

I realise the Hotel Beacon is not a luxury hotel but people have alot of good things to say about it for the reasons as listed above by Bowspirit. Therefore I am seriously considering it.

I am heading for the "City" at the end of May. I have found a centrally located apartment hotel that is usually highly recommended here, The Radio City Apartments. I am paying about $200.00 per night. It's just me. I had thought of using VRBO and had to change my mind. Maybe another one for you to look into

http://www.radiocityapartments.com/

Lox: cured salmon (often smoked) that is sliced very, very thin.

I have also found that the prices rise exponentially if you want a 2 bed room. I would disagree about staying in the Times Square area. Granted it is not as pretty as other areas, but if you are interested in the theatre it is an excellent location. After a long day it is really nice to be a short walk away from the theatre

If The Muse is within your budget -- grab it. You will not be disappointed. For an amazing grocery shopping experience go to Whole Foods. Zabar is fun but it's not a supermarket--more deli combined with cooking supplies --kitchen tools, etc. Whole Foods is the best supermarket you will find anywhere.

And Whole Foods is a chain. meh. Zabar and Fairway are unique NYC institutions, you won't find anything like them anywhere else and they're where the neighborhood locals shop for their groceries. Anyway, I'm sure you aren't planning a trip to a NYC grocery store to buy paper towels and furniture polish. (buy you'd find both at Fairway and Zabar)

The Muse is fine, the rooms are small. You can check oyster.com for photos of many hotels in NYC. You might want to visit Trip Advisor for a look at the photos there too.

Radio City Apartments are quiet basic - not nearly as pleasant as the Beacon. I would not reco for someone who started out wanting a 4* plus hotel.

And anyone coming to NYC should have a new york breakfast at least once - a real (not Wonder bread like they have inmost of the country) bagel with cream cheese and lox (yes, it's smoked salmon).

"The Muse is fine, the rooms are small.

Bowsprit, I have to disagree with this statement. I stay at The Muse all the time and the rooms are huge. The baths in the Dbl/Dbl are enormous, with a double sink vanity that is at least 5 feet long and one whole wall is mirrored. Its the perfect bath for two women to share.

While there are Whole Foods around the country, it is still the most amazing grocery store imaginable. The OP said she wanted to visit an American "supermarket" and Whole Foods fits that bill in spades.

I looked at The Muse photos on Oyster. They are somewhat misleading. The Muse is like all NY buildings -- quirky as far as layout goes. Each room is different. The baths in the "03" Dbl/Dbl rooms are much different than the photos shown on Oyster. The staff is great about accommodating a request for a particular room, so just ask. Oyster also leaves the impression that The Muse is right in the middle of Times Square, which is also not true. Its a block away and out of the hustle bustle.

katec1...While I see you already have a lot of great places to consider, I would like to just add that although I used to always stay at the Doubletree Guest Suites in Times Square on my trips to NYC, I have recently begun renting furnished apartments.

I do not understand your comment about vacation rentals being illegal in NYC as we just did this as recently as December. I have rented as long as ten days and as short as two. I have primarily rented in the Upper East Side (62nd & 2nd) and Upper West Side (73rd & B'way). Prices were under $200 per night for the studios I have personally rented (but 1 and 2 bedrooms are available as well).

The place I used last is www.laragroup.net. Look under Vacation Rentals on their home page for this information if interested. Lara Group is also on Facebook. Good luck.

Another thumbs up for the Beacon. I stayed there in late August '09 with my son in a one-bedroom suite with two double beds. Loved the location, the nearby markets, restaurants, ease of access to the subway. As others have said, the hotel is comfortable but not luxurious. The bathroom was small but modern with an excellent shower. We found it very convenient to eat breakfast in the room on some mornings, having purchased lox from Zabars, bagels from H & H (the kitchenette thoughtfully had a toaster with bagel-width slots), and blood orange juice from the Fairway market across the street. Levain, a wonderful little bakery, is also close by. I'd stay at the Beacon again.