I'm on a budget, and Hotwire.com got me a good deal on a 3* hotel in Vancouver for not much more than a motel would have cost.
Priceline.com is another, similar service. Hotwire was a little better by promising a non-smoking hotel before I booked.
To me, the hotel is basically for showering, sleeping and leaving what material possessions I won't need.
When I travel, I plan to spend most of the time away from the hotel, but still want a nice bed to sleep in.