We went to the Metropark on the 3rd January and paid just over £60 with the taxes. Close to the metro. Its really good value in a city where many hotels are really expensive.
http://www.metroparkhotel.com/
( if you like the hotel and are checking for cheapest prices make sure its the Metropark Causeway Bay. There is also one in Kowloon which I don't think is anything like as good. We got the cheapest price with BA by the way but the first time we went the hotel itself had the cheapest quote)
Our reviews for it are here

Anyone know which area in Hong Kong is best for nightlife, and can recommend a decent hotel which would be in this area. Preferrably near the MTR and with good links to the airport.

Maybe I'm asking for too much.

The liveliest area is Lan Kwai Fong in Kowloon. Haven't stayed in Kowloon though. We have visited this area 2 of the 3 times we have been in HK. Dont worry too much about the location of your hotel, as long as its on the MTR route. You can get anywhere within minutes. On my first time at the Metropark I wrote something about preferring to be within walking distance of restaurants. But at that time I was ill and found the MTR difficult.
Causeway Bay also has good restaurants and bars- not as "rowdy" as LKF but I actually preferred it. The Metropark is on the outskirts of it. We stayed right in the middle of things the first time at the Excelsior but it is way out of my range now.

Had a look through Discover Hong Kong. It doesn't give details for this year but does talk about the Winter Festival last year. ( Have to say its not a patch on the Singapore tourist board online magaxzine)
It would appear that their main celebrations are for Chinese New Year. The Winter Festival does mention the light show on New Years Eve. Not sure how different it is from any other day though.
One thing- take a jacket as we were there for one night(3rd Jan) and it was really cold. Great during the day as we were able to sightsee without being drenched in sweat as we were the first two times

Lan Kwai Fong on HK Island?

I like staying on Kowloon, normally stay in the Harbour Plaza Hong Kong which is great value with amazing views over Hong Kong Island (better views that way round). It's so easy and cheap to get around Hong Kong, I prefer to be away from the main drag anyway.

(Our) New Year is low season, so you should get decent prices (comparatively!). Never been there for New Year so wouldn't be sure what to recommend for a party...

sorry yes- mistake! Its in central district of HK island.

Have taken your advice Fiona and booked the Metropark Causeway Bay for 5 nights.

Booked a harbour view room for £66 a night through hotel travel.com

Can't wait now.

We really looked all round last year and couldn't get a better deal.

Fiona, looking for more advice.

What is the best way to get from the airport to this hotel and vice versa.

http://www.metroparkhotel.com/en/guide.php#bus
You can prebook the hotel airport transfer. These are coaches which each go to several hotels. The counters are to the right when you come out of arrivals and a good bit down. I can't remember the costs but it was reasonable.

Now been a change of plan to the hotel. HotelTravel.com got back to me and said they had no rooms left at the £66 rate but could offer £98. So I have changed hotel and have now booked the Royal Plaza in Kowloon (so much for a harbour view).

Mind you the more I read about this hotel the more I like it as it is not in the touristy areas, is near 3 MTR stations, has spacious rooms for HK, also has a shopping mall below it and you can get the train from here into China, which may be a good day trip.

Sounds good, I noticed there is not a review for it in the Hotel Reviews so I will add this to it when I return.

Its right on an MTR so you won't have problems They also have an airport shuttle service. Looks good to me

Personally I would have stuck with Hong Kong Island. Sure being close to MTR stations is fine and a great way of getting about but there was nothing to beat the old street cars that run up and down HK Island. They are slow, but so cheap, it's almost like a city sightseeing tour just being on one. We got to see a lot of things we wouldn't have done if we had stuck with underground trains etc.

Just for anybody else looking at HK Island. Although we were on a RTW trip and on a budget, we actually wanted to avoid the backpacker area in Kowloon so opted for a hotel in Hong Kong. We chose the Ramada HK Island. Despite being quite out of the way, we actually felt detached from the tourist areas and saw a lot of more of "working day" Hong Kong, which was amazing. Each day we came out of the hotel and walked down the famous Fish Market Street, which was a great wake up call (smell if you like). Alternatively we just hopped on one of the aforementioned street cars and enjoyed the ride.

Another bonus was an upgrade to a suite in the Ramada for free. So instead of a flea pit backpacker hostel we actually had 3 rooms all to ourselves with amazing air conditioning and great views out to the harbour.

oh boy do I remember the market
I also like to find the "real" Hong Kong". You can do that where ever you stay. Just get a decent guide book which features walks. Use the MTR and/or taxis to get to the district. Transport, including taxis, is cheap.
WE also have used the street cars. When you are sightseeing use those at least once to get to the next area you are interested in. I did a few times wonder how on earth I was going to get out of the packed streetcar

Across the road from the Ramada was a laundry where she did two loads of our washing for about 30p, same day pick up. She couldn't speak a word of English but she was a lovely old lady and would just hold up fingers for the price.

Things like that tend to stick in the memory on a 9 month trip.

Now been a change of plan again to my hotel booking, due to the Royal Plaza being billed in US $ around 12th Dec the falling pound has made a huge difference to the cost of this hotel which was to cost $821. When we booked it this would have been £480, it would now cost around £586 over £100 more.

Because of this I have cancelled the Royal Plaza and booked the Regal Kowloon hotel in Tsim Sha Tsui for £380 on the British Airways site. The current poor £ must be making a huge difference to everyones travel costs at the moment even the HK dollar is less than 11 to the £ at present.

Anyone stayed at this hotel?