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Yeah we almost stayed at Hotel 17, but they were fully booked. If your girlfriend is worried about the roughness seriously don't fret, New York has cleaned up pretty well recently with the no tolerance policies that Giuliani put in (think it was him). Most of the hostels do private rooms, with en suite in some as well. Check Travel Advisor as well.
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I went in September and the exchange rate was about 1.65, but as pistanator said it will only go lower. If you're looking for a budget place to stay you should stay in the Central Park Hostel. I stayed there when I went and it was really good. Its in Harlem but don't let that fool you. It's actually a really nice place! The hostel is pretty cheap and it's really clean, got a pool table and internet and cable and stuff as well. I didnt take a bike with me but I saw they'd let someone chain their bike up in the hostel so its pretty safe. All the way up on W103rd street but thats just a good excuse to cycle through Central Park to get downtown...
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I'm not sure that PCSOs have designated powers to stop cyclists, except for cycling on pavements.
I was on the pavement to be fair, for all of two seconds.. He gave me the 'its an offence' bullcrap. Saw them fining a guy for riding on the pavement, thought 'Im not getting fined for being on the pavement for two seconds' then fight or flight kicked in haha. He tried to grab me as well.
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"Not more bike stuff.."