I have visited Manhattan around 12 times, the last 5 times I have stayed at the Herald Square. For a budget hotel it is great, the staff are friendly and helpful and the rooms are spotlessly clean. There is a lounge just off the lobby and there is free tea,coffee, hot chocolate and biscuits provided by the hotel.
It is a good place to meet other guests and share everyones experiences of their stay in Manhattan. The hotel is situated between the 5th and 6th avenues around 5 minutes walk from Macy's Broadway entrance and the same for the Empire State Building, on 5th Avenue.
All the other famous sights, such as Times Square, Central Park, Rockefeller Centre and Radio City are within walking distance. For those who don't want to walk the subways take you to the sights.
I will be staying at the Herald Square in November 2008 and would recommend this hotel to anyone who is visiting Manhattan.