The following budget priced hotels are recommended.

Motel One Hamburg am Michel

Ludwig-Erhard Str. 26 · D-20459 Hamburg
Tel.: +49/40/3571890-0
Fax: +49/40/3571890-10
hamburg-am-michel@motel-one.com
http://www.motel-one.com/de/hotels/hotels-hamburg.html
Right opposite the church

Hotel Michaelishof

Herrengraben 4 · 20459 Hamburg
Tel.: +49/40/3590 69 12
info@michaelishof-hamburg.de
http://www.michaelishof-hamburg.de/

Just next door to the Katholische Akademie, and the Kl. Michael church, further down the hill and diagonally opposite the big St.Michaelis Kirche.  The Michaelishof is an annex of the Baslerhof Hotel on Esplanaden.  It has been highly recommended – and is simple but good.  The reception desk and phone are manned from 7 am – 12 midday, but access to the hotel is possible at any time.  Prices for 2012  –  single rooms from €69, double rooms from €84.  This includes a light breakfast – tea/coffee and a croissant, and free car parking.