You'll probably have to choose one or the other, unless 1-3 miles is not too far away from the cataracts for you. The most economical lodgings (as well as many reasonable restaurants both chain and independent) are on Lundy's Lane. This will put you somewhere between 1-3 miles from the falls, but you will be on a road that can take you directly to the falls. There are many cheaper lodging chains as well as independent places there. However, remember that all NF lodgings normally raise their prices up for weekend nights. It is not unusual to see a room's price double from weekday to weekend during the peak travel season.
In addition, about a year ago, I stayed at the Rodeway Inn Fallsview on Stanley Avenue. It was right across the street from the Minolta tower, surrounded by restaurants both local and chain and was a short walking distance from the Fallsview Casino. It wasn't too far up the hill from the Falls either. A day pass on the incline could cut that down even further. Depending on when you go, the price may be more than it was for me ($65C). Nailing that deal down is up to your own research.
Three additional tips about the Rodeway Inn Fallsview:
1. Make sure it's the Rodeway Inn Fallsview on Stanley Avenue since there are three Rodeway Inns in NFO and a fourth in NY. The other three are MUCH different than this location and are not recommended.
2. This location is a hybrid where they built a new section in front of an older property. I stayed in the newer section and can report a clean and well appointed room. Some reviews claim the newer section is better than the older one. However, a 4 out of 5 smile rating from Travelocity and a three diamond rating from AAA may contradict that idea. Having only stayed in the newer section, I can't confirm it, though.
3. For some unexplained reason, I found the double bed rooms here to be cheaper than the single bed rooms. Usually, it's the other way around. I had no problem being in a double bed room (especially since the room was quite large to begin with) if it meant my stay was cheaper. Even if you only need single rooms, opening your options might get you a better price.
Try the Red Carpet Inn, it is not very far from the Falls, but still rather a budget hotel (inn/motel).
Don't expect much from this place, though. What it has in better distance is covered by a very very simple hotel.
Rodeway, already mentioned here, is another good option, and is also a tad farther than the Red Carpet
Also try:
Gday Lyzza,
There are a quite a few hotels and places to stay in Niagara Falls obviously and most of them are pretty good. It all depends really on the location and also your budget.
Are you going on your own or twin share?
The Comfort Inn at the Pointe is a good 3 star option and is about $170 per night twin share.
A Run of House Room at the Days Inn at the Falls is about $120 per night twin share.
If you need any more info please contact me at nick@nickbowditchtravel.com
Good luck and I hope you have a great time!
Oakes Overlooking The Falls Hotel
Renaissance Fallsview Hotel
Doubletree Resort Fallsview Hotel
Marriott Fallsview Hotel
Check this http://hotels.americacheaphotels.com/SearchResults.aspx?fileName=Niagara_Falls&languageCode=EN
sheraton falls view is the best and not expensive
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