Andi here, I am from NYC and until recently had never stayed in NYC. Business meetings recently have forced me to stay over and I am able to recommend some hotels to you.
For a first timer to NY and as Marcie says, to see the lights and sights, I would recommend Mid-town (42nd street to 80th) and within 4 blocks east or west of 5th avenue. This year, there have been wonderful rates in NYC. I just stayed at the Waldorf=Astoria for $289 in a gorgeous room. You could stay at the Algonquin for $209. Both of these hotels are lovely, though the Algonquin's rooms can be small. The W, the Marriott East Side, the Intercontinental, any of the chain Times Square hotels are nice. You don't want to go any further east than Third or West than Broadway/7th. If you go uptown (80's), stay around the park/museums.
You might get much better rates downtown, near the financial district. There are marvelous restaurants and some great tourist attractions down there as well, such as Soho and the Village. But at XMAS, mid town is the place to be.
We'd love to meet, give us a call!
By the way, I am astounded at how low NYC hotels are now...and restaurant week (which is usually just a week) has been extended at many places through March, offering $35 menus. NYC is a bargain to visit this winter.
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