If you fancy splashing out a bit try the Shangri la- ( reviews here. Although KL is not ever going to be a place I would rave about, this hotel was one of the best we have ever stayed at. It is within walking distance of Jalan Alor and is also on the hop on hop off route. We did take a taxi there, only because we didn't know exactly where it was but walked back.
Re taxis- they are a real pain in the neck. We got fed up getting into and then out of taxis as they kept refusing to take us. In the end we just got in, said our destination and then 10 ringits( assuming it was within the city). At the time that was a massive £1.50 but it kept everyone happy. I know some members would frown at that, but sometimes you just can't be bothered and want to get from A to B without grief all the time.

Last time we stayed at the Royal Bintang on Bukit Bintang, just across the road from Jalan Alor.

thanks both of you for the answers, I may do the Shangri La on the way home and another hotel on the way out? can I ask what is the distance to Chinatown from Bukit Bintang area? many thanks, shirleyv

good idea to try one each way- have done that in Singapore before.
We did walk to Chinatown from the Shangri La but it took longer than we had thought and I woudn't do it again.

From Royale Bintang its only about 5-10 mins- we do it regularly

I recommend you have a good look at the reviews of the kuala lumpur hotels on trip advisor as the price difference between a good and poor hotel is not that much (you can get a five star hotel from about £30 upwards).