We just got back a few weeks ago from NYC. We are also a family of 5 (two teenage boys and a 2nd grader). We stayed at the Residence Inn in Lower Manhattan. It was a quick walk to Battery Park and the Liberty Island ferry. I think we paid about $375 per night but I thought it was a fair price for Manhattan. We had two double beds and a pull-out sofa plus a kitchenette...this was the biggest suite that the hotel offered, called the Maiden Corner room. The hotel had a free breakfast which is a huge bonus and savings for us. We would fill up for the day, grab a snack mid-day from a street vendor, and then do a nice sit-down dinner. I would definitely stay at this hotel again....it was right next door to the Fulton station, which gave us easy access to the entire city. I did a lot of research and priced out various locations and airbnb's and this was the best deal overall.
FYI, our itinerary for about the same amount of time looked like this. We bought the
CityPass, which helped us save $$. We are from the west coast so the time change makes it difficult to wake up too early (and also teenage boys). But we were out the door by 9ish every morning.
Thursday - Arrived at about 5pm (drove from Boston where he had spent the first 3 days of our vacation). Grabbed pizza near our hotel and then took the train to Times Square. Walked around and had dessert at Junior's.
Friday - Arrived Battery Park around 10am. Spent about 3 hours doing the statue and Ellis Island. We then spent about 90 minutes at the 9/11 museum and memorial -- short walk and all walking distance from our hotel. Rested in the hotel for about an hour and then took the train to Chinatown for dinner and then to the Bronx for a Yankees Game.
Saturday - Train to Rockefeller Plaza to get tickets for Top of Rock. Went to FAO Schwarz then spent time in Central Park and then visited the Museum of Natural History before going to our 3:30 Top of Rock reservation. We then took the train to Little Italy for our dinner reservation at Nico's.
Sunday - Train to 5th Avenue, spent morning shopping then grabbed hot dogs and enjoyed Bryant Park. Train to MET and then dinner in Times Square and more shopping.
Monday - Train to Empire State Building then late lunch at Katz's Deli before heading to JFK for an evening flight.
We packed in a lot in four days and used public transport the whole time. We averaged about 8 miles walking per day.