Hi Devil,
Try staying in Queens, NY. It is one of the 5 boroughs that make up NYC. It is easily accessible to Manhattan via public transportation and the hotel rate will be much, much cheaper. There are a number of hotels near the international airport (JFK-also in Queens) that you would most likely be flying into. Cheaper than Manhattan for sure, but more than a hotel slightly further outside the airport.
While I understand the appeal of staying in Manhattan, it is very expensive and even more so in December. The hotels and restaurants hike up the prices even more because of the high tourist volume at Christmas time.
I am usually on CB, so if you have questions, feel free to ask.
Eng Teach