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New York is definitely the "Capital of Hotels".  There are many great hotels to choose from.  I will put them in categories:

The Old Classics (over-priced, not-that-great):

bulletThe St. Regis
bulletThe Waldorf Astoria
bulletThe Pierre
bulletThe Plaza

The New Classics (also expensive, but a little nicer):

bulletThe Four Seasons
bulletPlaza Athenee
bulletThe Penninsula

Those trendy hot spots (always will cost you top dollar to hang with celebs):

bulletThe Mercer
bulletThe Hudson
bullet60 Thompson
bulletThe Tribeca Grand
bulletThe SoHo Grand
bulletThe Royalton
bulletThe Morgan
bulletThe W New York (many locations...Union Square now open)

You won't remember you're in New York:

bulletThe Inn at Irving Place