LastMinuteTravel.com has had a promotion running since around the beginning of June that offers $10 hotel rooms in certain cities. Here's the link to the offer:
Right now, they're offering a room at the Astor on the Park in NYC for $8.20 on August 26th & August 30th. While the reviews for this hotel don't exactly put it at the "3 star" they claim, it seems OK (I've never personally stayed there) and $8.20 for a private room is cheaper than any hostel you're going to find. Just thought I'd pass on yet another travel deal.