Although your first instinct may be to pick a hotel based on price, a more expensive hotel might save you money in the long run. The trick is to balance the location and your need to pay for transportation.
Photo by David Stanley
According to Wise Bread, location is everything:
You have limited vacation time, and you don't want to waste it getting from point A to point B. When you stay at a well-located hotel in a pedestrian-friendly city, you can get to many places just by walking. And if public transport is safe and convenient, you could save a lot of money on taxi fares or car rental. You may even find yourself with enough time to visit a particularly interesting attraction more than once.
Personally I've used this tip on many trips and figured in public transport travel time and parking into total costs. The hotel in the centre of it all gives me more time at the destination and less hassle. That's why they charge more.
Check out the other ways an expensive hotel can save you money by following the link.