Yup, like I said, budget hotels aside (Hotel Hamilton is one of them), the rest will cost you an arm and a leg. Another choice would be the famous (or infamous) Hotel 81. Which isn't that cheap too if you get the ones near CBD.

Only those in Geylang are in red light zone. otherwise..no. Anyway, Geylang & little India opposite Sim Lim plaza are the areas you really can find cheap budget hotels (Geylang) & hostels (Little India)

Although Geylang is very notorious and lotsa pro & ah kuas lurking around the roads at night...It is not a problem. You can even roam that area at night..really lively and the hotel81 is suprisingly clean. & cleaner than lotsa 3 stars rated hotels in malaysia!