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Kygirl, we have always found spring to be the least expensive time to visit NYC. Manhattan is expensive any time of year but is close to everything like theaters and shopping.
July and August are the low-season for hotel rates in NYC, but the high season for airfares. Sept-Jan 1st are when hotel rates are at their absolute highest. (I had a job where I had to book hotels for actors coming into town for a film and finding rooms was a nightmare.)
Jan and Feb are probably your best bet for lower hotel rates and airfares, but the weather is the absolute worst. Check out Better Bidding on tips for how to grab nice hotel rooms at good rates on the auction sites. I used to get rooms in the city occasionally when I just needed to get away from my roommates.
The first time I went to NYC, which was about a year and a half ago, I booked a vacation for airfare and hotel for 4 nights and 5 days for $475 or so. It was for a nice hotel-I believe it was DoubleTree somewhere in midtown. This was a week before spring break in March, and literally the same exact time frame one month later was an add'l $1000. I have also heard February is cheap since the holidays are over and it is one of the coldest months of the year, but I don't know how enjoyable that would be for you.
You can check this website : New York Hotels, they have rate table
I hope that website does not only have good rates because in NYC I would suggest being able to actually SEE a room before you take a room, unless this site only posts decent hotels.
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