Hostel or cheap room in New York city? ASAP!!

You might try tripadvisor.com instead of here. This website is focused on European travel.

The closest Hotel to Penn Station is the Hotel Pennsylvania, and is fairly cheap by Manhattan standards.

As Michael stated, the Hotel Pennsylvania is right across the street from Penn Station. However, you or your friend should check online because that hotel has a serious bedbug problem awhile ago.

I would do a google search for "New York City hostels Pennsylvania RR station". Or you can try same title with "discount hotels instead."

If I were staying in New York, I would search a suburb because the subway is so fast and convenient. Staying near the RR station adds too much to the cost when it is not necessary.

Last year I stayed at Chelsea hostel for about $26. Your friend can get a cheaper bad without insuite bathroom.It's on W22nd street and 7 Av , I think.
Take a look at hostels.com

Bea's idea is probably the closest one since it's at 22nd St and 7th Ave., while Penn Station is approximately between 30 and 34th St between 7th and 8th Avenue. (It's Underground. There's this "thing" called Madison Square Garden right above it.)

Either a one stop subway ride or a 10 minute walk.

I'm not familiar with the hostel itself but the area is very good (Chelsea), trendy, and safe.

They have a website.I think the hostel's name is actually Chelsea International. There is a police station right across from it and yes it seemed to be safe.I walked on 7th and 8th Av by myself late at nite without any problem.

Thank you for all the info. Very appreciated as always.
Angela (Canada)