I traveled through India with my 6 year old little girl. We stayed several weeks in Delhi, staying at several hotels.
Hotel City Castle was recommended by our regular rickshaw driver, whom I think of as a brother. The location is amazing. It's NOT in a touristy part of town, which I, as a traveler (not a tourist) seek out. The first night we stayed here was Diwali, and we observed the chaos from the rooftop garden before going to the street to join in the fun of lighting 'crackers' and sparklers with the locals.
The rooms are clean, and quiet even on the street-side. The food is great and the service is exceptional. Try the vegetable omelet for breakfast - I ate them every day I was there.
The neighborhood is funky, full of small automotive shops of every type, and wonderful food stalls everywhere we wandered. There's also a wonderful street market just 2 blocks away.
We love this place and can't wait to go back!