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Originally posted by baltassoc
While it's undergoing renovations that will undoubtably make it much less cheap and much less cool (but definitely more chic), I think the Gramercy Park Hotel (www.gramercyparkhotel.com)is a great choice with kids. The rooms are huge, relatively speaking, and access to the park is nice for the kids. It's not "kid friendly" in the sense of having a pool or Disney characters or whatever. It's just in a great location. Downside is that it's needed a renovation for about 30 years. It's about a block and a half from the subway.
Try to get a king size suite overlooking the park on the back side elevators.
Cheap is, of course, relative. You can probably get a suite there for about $250 a night (maybe a little more around Christmas), but that gets you a living room with a fold out couch and a seperate bedroom. Anyplace in midtown is going to run that for a 100 sq.ft. single.
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I would also endorse the High Bar which is the rooftop of the Gramercy Park Hotel. It has a very good outdoor patio but it is heated so you can sit out there in the winter. People say it is scene-y, but I disagree. Mostly low-key crowd except for the occasional celebrity who goes there in the winter because you can smoke on the patio year-round. Also the hotel bar (on the first floor) is very comfortable.