With Munich the hotel doesn't need to be on he doorstep as the U Bahn /trams/buses and S bahn are all part of a very efficient integrated and cheap transport network. I normally stop in the suburb of Harras in the south west of the city (5 minutes from the centre by U bahn and about 15 minutes from the Olympic Park and the BMW musuem.
Have a look at the Hotel Carmen of the Hotel K & K, if you do decide to stay and I would recommend the Wirtshaus in Sendling (5 minutes walk from the hotels ) for excellent traditional scran .