Here are a few suggestions for alternate hotels in the downtown area with rates closer to the $70-$110 range. They are definitely not fancy or lavish, but functional (think Motel 6 with older furniture). They are within walking distance of the Hilton, ranging about 1-1.5 miles away.

Days Inn Downtown, 321 East 5th Ave, 907-276-7226
Alaska Budget Motel, 545 E. 4th Ave, 907-277-0088
Econo Lodge, 642 East 5th, 1-800-55-ECONO
Rodeway Inn, 1104 East Fifth Avenue, 907-274-1650
Mush Inn, 333 Concrete St, 907-277-4554

Here are a few options that are slightly farther away, perhaps a 10-15 minute drive:

Super 8 Motel, 3501 Minnesota Drive, 907-276-8884
Parkwood Inn, 4455 Juneau St., 800-478-3590

Be sure to make any hotel reservations as early as possible as vacancies are generally limited in the summer. For a more complete list of Anchorage hotels and motels, try MetroTravelGuide.com.