There are several distinct areas of Hollywood. You will not be able to walk from one area to another, but you can easily take a metro bus. A few of them are:
Hollywood Blvd: The iconic tourist district of Hollywood. Here you will find the Walk of Fame (stars on the sidewalk), the Chinese Theatre (handprints in the cement), the wax museum and other popular attractions. This is probably the area of highest interest to tourists. This area spans along Hollywood Blvd from Fairfax Avenue to Vine Street, with many attractions near Highland Aveenue.
West Hollywood: This includes Sunset Strip. This is where you'll find most of the clubs and night life. This area is about a mile south of the Hollywood Blvd area. It spans along Sunset Blvd from Doheny Drive to Crescent Heights Blvd.
Melrose District: A collection of eclectic shops and trendy restaurants. Actually this area is in Los Angeles, but it's close to Hollywood. This area spans along Melrose Avenue from Fairfax Avenue to La Brea Avenue.
Highland Gardens($$)7047 Franklin Ave. Half mile from the Hollywood Blvd tourist area. This is an inexpensive option, if you don't mind walking.
Hollywood Celebrity($$)1775 Orchid Ave. Walking distance from Hollywood and Highland, Chinese Theatre, Hollywood Blvd.
Hollywood Liberty Hotel($$)1770 Orchid Ave. Walking distance from Hollywood and Highland, Chinese Theatre, Hollywood Blvd. Offers free parking.
Hollywood Roosevelt($$$)7000 Hollywood Blvd. Famous hotel across the street from Hollywood & Highland and the Chinese Theatre. This would be a very cool place to stay.
Renaissance Hollywood Hotel($$$)1755 North Highland Ave. Part of the famous Hollywood and Highland entertainment complex, near upscale stores, restaurants, movie theaters and the Kodak Theater. The Walk of Fame and Chinese Theatre are nearby. This hotel is in a very convenient location.
Rodeway Inn($$)6826 Sunset Blvd. Half mile from the Hollywood Blvd tourist area. This is an inexpensive option, if you don't mind walking. Also, it would be easy to catch a metro bus to the Sunset Strip. Offers free parking.
Best Western Hollywood Plaza($$)2011 North Highland Ave. Near the Hollywood Bowl. It's about a mile north of the Hollywood Blvd area. This hotel is a great choice if you plan on going to Universal Studios as well as the Hollywood Blvd tourist area, because either destination is easily reached by metro bus.
Hilton Universal City($$$)555 Universal Hollywood Drive. Adjacent to Universal Studios. Includes free tram service to the park and City Walk. This is a really nice hotel.
Nite Inn Studio City($$)10612 Ventura Blvd. This hotel advertises that it is "walking distance" from Universal Studios, however it could be an uncomfortable walk if it's hot. However, you easily could take the MTA bus. A benefit of this hotel is that it's near the MTA rail Red Line, which takes you to the tourist area of Hollywood Blvd in a few minutes.
Sheraton Universal($$$)333 Universal Hollywood Drive. Adjacent to Universal Studios. Includes free tram service to the park and City Walk. The hotel's concierges often direct guests to Burbank's "It's a Wrap," where they can buy clothes worn in movies and on TV shows.
Other areas of Hollywood: These hotels are not very close to the tourist area. You will need to take a cab or bus. But you can save a lot by staying in one of these hotels, and still get to your destinations in a reasonable amount of time.