Depending on what your budget is will determine a great deal on where you can stay while in Hollywood. If you're very low on funds, and were planning on going to a hostel, you're in luck. USA Hostels Hollywood is located at 1624 Scharder Blvd. This hostel receives rave reviews and includes in it's price (which usually starts at $24/night) all you can make pancakes, wireless internet, storage for your bags, as well as offering shuttle service to the beach (3 days a week) and free backpack sized lockers for your use.
They also run several tours in the area, have pub crawls and other great activities! This hostel is also located in the heart of the city, where it's convenient to walk around Hollywood Blvd. as well as near plenty of nightclubs. There are additional hostels in the area, though you'll want to research the area where the hostel is located to make sure it's most convenient based on your needs.
If you're looking to stay at a nice hotel, there are many amazing hotels in Hollywood. The Hollywood Roosevelt Hotel, located at 7000 Hollywood Blvd, is known for it's Hollywood history and fun. Back in 1929, the Hollywood Roosevelt Hotel hosted the 1st Academy Awards. The hotel also has had many notable Hollywood residents and guests thru the years stay there including; Clark Gable, Marilyn Monroe, Johnny Grant and Elizabeth Taylor to just name a few.