For a good read on soaring costs of Manhattan hotels, read this:

http://tinyurl.com/yd8r2d

According to the article, the $512 rate was for "Deluxe" rooms: "This upsurge in rates is nowhere more noticeable than in the deluxe tier. Just this May, New York deluxe chain rates reached an astonishing average of $442.28, according to Smith Travel. ...Furthermore, last December, the average daily deluxe rate in Manhattan was a numbing $512.29, "

well...
IT actually says the AVERAGE daily rate is $215.05 . Pretty high compared to the average US rate of $95.
The $512.29 rate listed for December 2005 is described as the "average daily DELUXE rate in Manhattan "
Still scary. Glad I ONLY have to pay to live here, not visit!

I can't imagine how they're defining deluxe - maybe combining 4* and 5*. If you look at the top hotels - Mandarin Orriental, Ritz Carlton, Four Seasons, Peninsula etc - in December they're more in the $800 range for December.

Saturday through Wednesday last week at Le Parker Meridien, we paid an average of over $700+ per day for a suite with a "city view." That included tax.