Does anyone know of a good API to pull a list of hotels (preferably with address info/images) in a city?
You could probably trying using Yahoo or Google's APIs. They are generic, but by specifying the right set of parameters, you could probably narrow down the results to just hotels. Check out Yahoo's Local Search API and Google's Local Search API
I've used the TripAdvisor API before and its suited me well. It returns, per destination, a list of top-rated hotels, along with options to retrieve reviews, photos, nearby restaurants and a couple other useful things.
http://www.tripadvisor.com/help/what_type_of_tripadvisor_content_is_available
From the API page (available API content) :
* Hotel, attraction and restaurant ratings and reviews
* Top 10 lists of hotels, attractions and restaurants in a destination
* Traveler photos of a destination
* Travelers' Choice award badges for hotels and destinations
To expand upon @nstehr's answer, you could also use Yahoo Pipes to facilitate a more granular local search. Go to pipes.yahoo.com and do a search for existing hotel pipes and you'll get the idea..
Try Tixik.com (http://en.tixik.com/) and their API there (http://en.tixik.com/info/api). They have a very different data that big players, really good coverage mostly in Europe and good API conditions.