I recommend Secaucus, just 4 miles west of the Midtown Tunnel. It is serviced by express busses that run non-stop to the PA bus terminal 1 block from Times Square. Can usually get rooms in the $150+ per night range. Lots of hotels to choose from ranging from Red Roof Inn to the Hilton and Sheraton.
At 1/2 the price of Manhattan, it's worth a 15 minutre bus ride or $30 cab ride home late at night. And Secaucus is the land of outlet shops. Folks drive there from 100 miles away just to shop.