Third, if this was going to be a great trip with my friend other than her ideas on accommodation costs, I'd book what I wanted, have her pay a share, and cover the rest myself. No, it's not really fair, but at least you both get what you want.
Finally, for me, the hotel is ABSOLUTELY more than a place to sleep. It's very important to me to choose a place I can relax in and enjoy. I'm most likely to stay on site but I will use other hotels/motels if my budget isn't up to DLR hotel costs. However, it has to be more than a room with a bed.