Best Budget Hotels Near Madison Square Garden: 5 Hotels + Top Sports Bars (2026 Guide)

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Looking for cheap hotels in NYC near Madison Square Garden? You're not alone—and you've probably already realized that finding budget hotels near Penn Station that don't sacrifice location is harder than it sounds.

Most visitors planning a trip for a Knicks game, Rangers game, or concert at MSG make one of two mistakes: they either overpay for a Times Square hotel or book something cheap in New Jersey and waste half their game day commuting.

There's a better option.

The hotels near Penn Station and Madison Square Garden aren't all created equal. Some deliver genuine value. Others are just riding the Times Square tourist wave with inflated prices and cramped rooms.

We've helped thousands of visitors plan trips to New York, and after analyzing guest reviews and working with travelers who've stayed at dozens of properties, these are the 5 best budget hotels near Madison Square Garden that actually deliver on location, value, and experience.

And for each hotel, I'm showing you the best sports bar nearby—because if you're here for a game, you need to know where locals actually go before tip-off.

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Hotel #1: Fairfield Inn & Suites Penn Station

Best For: Maximum Proximity + Free Breakfast

Location: 325 W 33rd St (literally steps from Moynihan Train Hall)

When you're searching for hotels near Madison Square Garden, proximity matters. The Fairfield Inn delivers on this better than almost any other budget option in the area. You can walk out of the hotel lobby and be inside Penn Station in under two minutes.

The Details

* Last Renovated: 2019 (feels fresh and modern)

* Rating: 4.2 stars across 2,167 reviews

* Standout Feature: Free hot breakfast (saves you $40-60/day in NYC)

What Guests Love

The 2019 renovation shows. Guests frequently mention the modern, clean aesthetic throughout the property. But the real star is Blu33, the rooftop bar offering unobstructed skyline views—one of the few rooftop options among cheap hotels in NYC.

What to Know

Rooms are small, which is standard for hotels near Penn Station in this price range. Bathrooms are especially compact. The lobby can feel chaotic during peak check-in times, and you'll hear some street noise since you're right on 33rd Street.

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The Sports Bar Pairing: Stout NYC (Flagship)

Distance from hotel: 1 minute walk
Rating: 4.4 stars across 2,466 reviews

This is the flagship Stout location, right on 33rd Street, basically across from Penn Station. You can see Madison Square Garden from the windows.

What Makes It Great:

* Three floors of pure sports bar energy

* Wall-to-wall TVs on every level

* Elevated pub food (fish and chips, shepherd's pie, not just wings)

* Kitchen open late for post-game meals

The Vibe: Irish pub meets sports bar. Loud, packed on game nights, and full of Knicks fans, Rangers fans, and everyone in between.

Insider Tip: Get there early on game nights if you want a table. Even if you're standing, the energy makes it worth it. And because it's so close to the Fairfield, you can drop your bags and walk straight here.

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Hotel #2: Hilton Garden Inn Times Square South

Best For: Bigger Rooms + Outdoor Terrace

Location: 326 W 37th St (5-minute walk north of Penn Station)

Among budget hotels near Penn Station, the Hilton Garden Inn hits the sweet spot between value and reliability. It's the "safe bet" option—consistent, professional, and built to deliver exactly what you expect from a Hilton.

The Details

* Last Renovated: 2017

* Rating: 4.2 stars across 1,903 reviews

* Standout Feature: Outdoor terrace bar (rare among hotels near Times Square)

What Guests Love

Cleanliness is the name of the game here. Reviewers consistently praise spotless rooms and professional staff. You also typically get slightly larger rooms than other hotels in this price range.

What to Know

Breakfast is a paid amenity here (unlike Fairfield's free option). If you're carrying heavy bags from Penn Station, that five-minute uphill walk on 37th Street can feel longer than it looks on a map. Rooms are compact with limited storage for large suitcases.

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The Sports Bar Pairing: District Tap House

Distance from hotel: 3 minute walk
Rating: 4.3 stars across 1,764 reviews

Located on 8th Avenue between 36th and 37th, District Tap House is close enough to be convenient but far enough from Penn Station chaos that it doesn't feel like a tourist trap.

What Makes It Great:

* Over 40 craft beers on tap with knowledgeable bartenders

* Rotating seasonal brews and local New York options

* Solid American comfort food (burgers, wings, weekend brunch)

* Generous portions, quality above typical sports bar fare

The Vibe: Way more neighborhood than the other spots. One level, good lighting, craft beer focus. You can actually have a conversation without yelling.

Insider Tip: The crowd skews local, which means better service and a calmer atmosphere. If you're here on a Sunday morning, their brunch is underrated—good bloody marys, solid breakfast, way less crowded than most Midtown spots.

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Hotel #3: Holiday Inn NYC - Times Square

Best For: Best Value + High-Floor Views

Location: 585 8th Ave (7-minute walk from Penn Station)

When people search for cheap hotels in NYC, they're usually worried about sacrificing quality. The Holiday Inn Times Square proves you don't have to. It's one of the most competitive on price among hotels near Madison Square Garden, and the most predictable in experience.

The Details

* Last Renovated: 2015

* Rating: 4.1 stars across 3,708 reviews

* Standout Feature: Unbeatable Empire State Building views from high floors

What Guests Love

If you snag a room on a high floor, the views are legitimately impressive for a budget property. The hotel handles luggage and logistics efficiently despite the high volume of guests.

What to Know

Eighth Avenue at night can be very crowded and loud. If you're a light sleeper, bring earplugs or request a courtyard-facing room. Expect elevator wait times during peak hours. Rooms are notably narrow—keep the guest count low.

The Sports Bar Pairing: Yard House

Distance from hotel: 3 minute walk
Rating: 4.5 stars across 4,202 reviews

Located on 8th Avenue, Yard House lives up to its reputation with over 100 beers on tap and some of the highest ratings among sports bars in the area.

What Makes It Great:

* Two floors, tons of TVs, mix of communal tables and booths

* Takes reservations for groups (rare for sports bars)

* Massive food menu: wings, burgers, steaks, seafood, vegetarian options

* Big portions—you won't leave hungry

The Vibe: Energetic but not overwhelming. You'll see fans before games, groups watching Sunday football, people grabbing dinner. More laid-back than Stout but still has the energy you want.

Insider Tip: Sunday Funday for NFL games is huge here. Get there early for drink specials, but if you snag a table it's one of the best Midtown spots to watch football. And because it's so close to the Holiday Inn, you can walk back without dealing with a subway.

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Hotel #4: Homewood Suites by Hilton Midtown Times Square South

Best For: Families + Extended Stays

Location: 6-minute walk from Penn Station

If you hate feeling "boxed in," this extended-stay property gives you actual room to breathe. Among budget hotels in NYC, it's one of the few that prioritizes space over cramming in more rooms.

The Details

* Last Renovated: 2014

* Rating: 4.3 stars across 3,192 reviews

* Standout Feature: Kitchenettes and extra square footage

What Guests Love

The daily free hot breakfast is widely considered the best in the area—a massive cost saving for families. Guests appreciate the kitchenettes and the rare extra space, which makes a real difference when traveling with kids.

What to Know

Some travelers mention the decor is starting to show its age. You might wait longer for elevators during morning rush. This property is best for longer stays where the kitchen and space make a real difference in your overall experience.

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The Sports Bar Pairing: Beer Authority

Distance from hotel: 5 minute walk
Rating: 4.3 stars across 4,459 reviews

With over 100 beers on tap, Beer Authority has one of the most extensive beer selections among sports bars near Penn Station.

What Makes It Great:

* Two floors with extensive seating options

* Group-friendly with reservation options

* Full menu beyond standard bar food

* Consistent quality across visits

The Vibe: Reliable energy without being overwhelming. Great for families or groups who want options beyond just beer and wings.

Insider Tip: The upstairs area is often less crowded if you're coming with a larger group. Their Sunday brunch offers good value and plenty of TVs for early games.

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Hotel #5: Courtyard by Marriott Midtown West

Best For: Modern Tech + Hudson Yards Access

Location: 10-minute walk from Penn Station (closer to Hudson Yards)

This 2019 build is the most modern option among hotels near Times Square in this range. If you want the newest construction and don't mind being slightly further from Penn Station, this delivers.

The Details

* Last Renovated: 2019 (brand new construction)

* Rating: 4.2 stars across 1,480 reviews

* Standout Feature: Floor-to-ceiling windows with Hudson Yards views

What Guests Love

It feels brand new because it basically is. Top-tier fitness center, tech-friendly rooms perfect for digital nomads, and proximity to the futuristic Hudson Yards development gives you a different Midtown experience.

What to Know

It's located further west, meaning a longer walk to the subway and Penn Station. The newness and Hudson Yards location often command a premium compared to other budget hotels near Madison Square Garden.

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The Sports Bar Pairing: Dalton's Bar & Grill

Distance from hotel: 4 minute walk
Rating: 4.4 stars across 1,211 reviews

A neighborhood favorite that balances sports bar energy with actual dining quality.

What Makes It Great:

* Great balance of bar atmosphere and quality food

* Multiple TV setups for different games

* More intimate than the mega sports bars

* Solid cocktail program beyond just beer

The Vibe: Feels more like a neighborhood spot than a tourist destination. You'll see regulars mixed with visitors, which usually means better service and a more authentic experience.

Insider Tip: The burger consistently gets mentioned in reviews as one of the better options in the area. If you're looking for something beyond standard bar food, this is where you want to be.

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Beyond Hotels: Planning Your Complete NYC Trip

Finding budget hotels near Madison Square Garden is just the first step. Once you've got your accommodations sorted, you still need to figure out:

• How to get around without wasting money on taxis
• Which neighborhoods to prioritize based on your interests
• How to avoid tourist traps while still seeing the highlights
• Where to eat that won't blow your budget

That's exactly what we do at Khonsu.

Check out our custom guide service →

Or use our free trip planner to organize your NYC activities by neighborhood and start planning your days.

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FAQ: Budget Hotels Near Madison Square Garden

What's the closest hotel to Madison Square Garden?
The Fairfield Inn & Suites Penn Station is literally steps from Penn Station and MSG—about a 2-minute walk from the arena entrance.

Are there cheap hotels in NYC near Penn Station with free breakfast?
Yes. The Fairfield Inn & Suites Penn Station and Homewood Suites both offer complimentary breakfast, which can save you $40-60 per day in Manhattan.

Which hotels near Times Square are best for families?
Homewood Suites offers the most space with kitchenettes, making it ideal for families. The free breakfast is also a major cost-saver when traveling with kids.

How far are these hotels from other NYC stadiums?
All five hotels are well-positioned for transit to MetLife Stadium (NJ Transit from Penn Station) and Barclays Center (subway from Times Square/Penn Station area).

What's the best sports bar near Madison Square Garden?
Stout NYC is closest and has the most intense pre-game energy. District Tap House offers the best craft beer selection. Yard House is best for large groups.