I was there in 2007, hotel wasn't too extortionate, the Best Western on 48th street, small but modern an clean room off Times Square. We didn't fancy staying in Times Square all afternoon, so booked dinner in a local restaurant (hate to be cliché but an Irish bar), left at 11:50 and merged into the queue of people behind the barriers for Times Square itself, as soon as the Ball falls police knock down the barriers and everyone merges into the Square itself.
Ticker tap, fireworks, people dancing in the street the whole kaboodle.
The barman (who was from Blackrock) had our drinks waiting for us then when we got back to the bar.
If you're staying anywhere close to Times Square the hotels normally provide free donuts for the police, I also presume they expect them to be taken by guests!