I've been to New York twice. First time we stayed at the Hotel Edison which was just off Times Square. We thought it was an ideal location as we were right in the thick of it.
Second time we stayed at the COmfort Inn which was 1 block away from the Empire State Building and we could see it from our hotel window.
The Edison was a nicer hotel with nicer rooms and they were bigger than the Comfort Inn but the Comfort Inn was cheaper and to be honest you're not in your room a lot when you're there.
I'm jealous - would love to go back!