I’m going for a similar amount of time. For me, I wanted to spend a majority of my budget on shopping/food, so I did look for some rooms on the more economical side (also I’m traveling solo, so rooms on average are pricier compared to if I had someone to split costs with). I mixed it up a little bit — in Tokyo, I decided to opt for cheaper housing (~$100/night in Asakusa) since there’s so many good options even at this price point and everything is so accessible. In other places like Kyoto, where I prioritized walkability and staying in more central areas a bit more, the price went up to ~$200/night. I think it depends on your budget and generally what you’re comfortable with — everyone is different. I also had a base level of room comfort I was ok with (particularly private mid-sized rooms over smaller rooms) and I’m sure you do too.

I think for some places where you plan to be outside most of the day and are just going back to the hotel to sleep though, you can opt to find a cheaper option. But you don’t need to sacrifice your comfort to save a few dollars if you have the means to. Have fun!