Hiya guys,
I would plan to stay anywhere to the northeast of Times Square--say, roughly north of 45th street up to around 64th street and east of 6th avenue all the way to the East River. There are many small and large hotels in this area that should fit your needs.
Keep in mind that New York can be very cold at Christmas time--and the temperatures may vary greatly from one year to the next. I've been there 10 years straight at Christmas and the temperatures have varied from 10 degrees Fahrenheit during the day to 50 degrees Fahrenheit during the day. Plan accordingly and check the weather forecast just before leaving.
As far as some of the primary tourist spots:
Statue of Liberty
World Trade Center
Radio City Music Hall
Rockefeller Center
Central Park (and its skating rink)
Guggenheim Museum
Times Square
Broadway shows (theater plays on the street titled "Broadway)
Great restaurants (Mesa Grille, Peter Lugar, Per Se) along with many pizza parlors
Bistros in Greenwich Village
concerts of jazz bands all over town (I like 40th street)
Diamond district for diamond shopping
Fashion district
5th avenue stores
Grand Central Station
Madison Square Garden
and now they have an indoor ski resort in the Meadowlands (New Jersey) right next to the football stadium and basketball pavilion--also Medieval Times (jousting tournaments while you dine) is near there.
Enjoy
A good place in Manhattan means expensive. Sounds like your brother picked one of those $100. hotels that comes with critters? Last year I used Airbnb.com to get a shared apartment in Brooklyn for $79. because I wasn't willing to pay for a $300. hotel room.
Great shopping around Xmas in Manhattan, and you can ice skate in Rockefeller Center at night. I was amazed how much they've cleaned up the Times Sq area. When I lived in the area in the 60's, Times Sq was a porno show area.
For food, I suggest Italian and Kosher (think mile high pastrami on rye).
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