While I know the two doesn't usually come together, I am looking for the best option for price paid. I do know that cheap hotels exist at Cheung king mansions, but the service and the location does not justify the price for me. Any suggestions for a good and cheap hotel in Hong Kong?
You need to specify the price range and facilities that you hope for.
As you mention Chunking mansions then you are probably wanting something very low cost.
When I am spending my own money :-) I am very happy to stay in budget accommodation, but a look through Chungking persuaded me to look elsewhere for value for money.
BUT if you say that Chungking location is not good, where do you want to stay?
I'd consider Chungking's location excellent if you want to be in the centre of Hong Kong on the mainland.
There are numerous "real" hotels offering typical hotel service at typical lower end hotel prices. Then, there are the hostels -
For something of similar price to the lower cost Chungking accommodation but with better "quality" there are a number of places in Mongkok. This is a short subway ride to most major locations.
An example out of (probably) thousands around HK: I have stayed a number of times at the
Hong Kong budget hostel (don't let the name put you off) in Mongkok. I have no association with them except as a paying customer. Catch the odd-floors lift (1 3 5 7 ...). The building is terrible :-) and the hostel entrance is the manager's living room. BUT the beds are clean and typical china-rather-hard-comfortable, air conditioning works well, FREE always on 24/7 WiFi internet, cable TV (I never watch it), local phone in room, ensuite tiny bathroom with good electric califont to heat your own water. Rooms are clean and secure and I've not had reason not to trust the manager. The manager (Jacky Chan!) is a bit quiet but always polite, and extremely helpful with advice on Hong Kong. Jacky may be the owner, I'm not sure, but he and his wife are about the only staff you'll ever see. This is not a hostel in the normal backpacker sense - no shared area, no living room, no kitchen. Marvellous 'authentic' HK Chinese fast-food takeaways shop (you stand on the street while you wait) right at entrance. Hong Kong Mong Kok MTR subway entrance 1 minute walk (if that from front door. 10 seconds to Argyle street. Opposite north end of the marvellous frenetic frantic noisy people packed 'Ladies Market'. Nearby night markets, electronics, bird market, goldfish market, flower market. 5 to 10 minutres walk to MTR station on direct line to Hung Hom station where direct into China trains leave from (or go via Mongkok stattion and change lines).
A look at their website = http://www.hkbudgethostel.com/eng-index.htm shows prices are up on what I last paid. 250 RMB for a private room with shard bathroom. These are very small but as above are clean, tidy, aircon, WiFi, TV etc. You can access them via their website contact details or a hostel booking site. If you suggest when contacting them directly that you should get a small discount due to lack of hostel site fees, they may agree :-). Some rooms are in a wing away from the manager's office and WiFi may not reach. If you want free WifI be sure to say so. There are other hostels in the building and if one is full they will often refer people to the others.
Budget Hostel is ideally located in Mongkok, the busiest shopping, business and entertainment districts of this metropolitan. We are adjacent to Ladies' Market, Aquariums Market and Bird Garden. Other major point of interest such as Jade Market Temple Street's Night Market are also close to us.
Within 5 minutes walk, you can easily reach the station of MTR(Subway), KCR-train station (Railway to the border of Mainland China), bus as well as taxi stop. Vistors can access to all major destinations by taking these transportation networks. The airport bus route no. A21 stop is also adjacent to our hostel, it takes about 45 mins to or from HK International Airport.
Every room is squeaky clean and is equipped with a free local call private phone , air conditioning as well as tv set. Hot water is supplied in bathroom for shower.
Budget Hostel's staff are stationed in the hostel at 24 hours to safeguard guests' luggage in their room. As a result, the hostel is perfectly safe, guests can feel free to go shopping and have fun outside without worry about their belongings get lost.