The American embassy is located on plot number E 3 on Nyay Marg road at Chanakya puri which is in South Delhi. There are no hotels at a walking distance. Most people looking for hotels near the US embassy are the ones who come to Delhi for either their visa applications or interviews etc and they would obviously look for hotels that are not far away from the embassy. The major concern is the amount of money you would like to spend per night because being in South Delhi there are hardly any budget hotels like the ones you would find at Pahar ganj or Karol bagh. Here is a list of hotels that are fairly close to US embassy - The Ashok - This is by far the closest hotel from US embassy and is located on Niti Marg in the Diplomatic enclave in Chanakya puri itself. Price is what I don't like about this hotel but otherwise, this is a perfect location. Taj Palace - This is a five-star property just about 4-5 mins drive from the US embassy and is located near Dhaula Kuan on Plot number 2 on Sardar Patel Marg in Diplomatic enclave, Chanakya puri. This is one of the best properties in Delhi and the price they charge is well worth it. ITC Maurya - Both ITC Maurya and Taj Palace are adjacent to each other and again not too far from the embassy. If my memory serves me right, the US President stayed here when he paid a visit to New Delhi. Bukhara restaurant at ITC Maurya is world famous for its North-west frontier cuisine. There are plenty of other five star properties as well but these ones are near the US embassy. If you are looking for a more pocket-friendly hotel then you could look at Pahar ganj or Karol bagh. There are a lot of budget hotels near the Airport as well on Delhi-Gurgaon highway that you could look at.