If you looked at hotel info Sunday night, you probably didn't see a lot of options in the French Quarter. This morning at 9:00 am CST, the hotels released a great deal of additional inventory. I assume that much of that is due to Tennessee and LSU fans canceling their rooms.
Prices are unlikely to come way down, but more options may continue to open up through tomorrow. Just make sure when you're booking hotels that you check the guarantee / deposit language on the deal. Many NOLA rooms require a 50% or 100% non-refundable deposit for their better rates. Some also require a minimum stay of two nights.
Some French Quarter hotels that I recommend:
-- Astor Crowne Plaza
-- Hotel Monteleone
-- Sheraton New Orleans (some of the best deals I've seen; technically across the street from the Quarter)
-- W New Orleans (I've never stayed here, but it looks awesome)
Team Hotel (I think):
Hilton Riverside is located at 2 Poydras Street. The Hilton Riverside is located a few blocks from the edge of the French Quarter, and about a 0.4 to 1 mile walk from most of the really cool stuff. It's a very nice place. Our buddy LiquidCourage swears by the Embassy Suites near the Hilton Riverside, but it's too far from the French Quarter for my tastes. Both places are essentially across the street from Harrah's Casino (oh.hell.yeah.)
Overall on Hotels:
There are tons of hotels in the French Quarter and Central Business District, and both neighborhoods are generally fine. The nightlife is almost all in the Quarter. NOLA isn't the type of town where you go into a super cheap place that you've never heard of in an off the beaten path neighborhood.
If it's lower than 3 stars, don't even think about it. Not even college kids should be piling into a 2 star place in that town in my opinion. Dawgnoxious once booked a bunch of us into a place in '98 that looked like something out of Gangster's Paradise. Don't make the mistake we did.
PS -- We'll have restaurant recommendations in a few days (read: after I make my reservations). lol