Hmmm, now lets see. I'll look out the window and give some ideas
What to do:
Well there are the usual touristy things like The Peak Tram, Stanley Markets, Jumbo Floating Restaurant at Aberdeen etc.
Take a ride on the ferry across the harbour.
Be harassed by the hawkers along Nathan Road. On Saturday Mrs NM and I counted 45 attempts to sell us copy watches or tailor services while walking from the TST ferry terminal to about 1km down Nathan Road. Avoided on the way back by taking the MRT
Be sure to experience some local fresh food markets. One such example is Bowrington Road in Causeway Bay, very close to Times Square. If in that area, then check out the street markets at Jardine's Crescent (other side of Times Square close to Sogo.
Where to stay:
Well, it really depends on where you want to be! Kowloon or Hong Kong? I prefer HK rather than Kowloon side of the hardbour, but I am sure others will have a different perspective. On Kowloon side, you could try the Intercontinental or The Langham. At HK side, perhaps Conrad. I normally stay at Causeway Bay, but certainly not 5 star down this end. I frequent Holiday Inn Express, Crown Plaza, The Excelsior, or Park Lane, but none meet your criteria.
Where to eat:
If you know a local or someone who speaks Cantonese, then there are some wonderful dining experience to be found. But if relying on English menus then some of the real treasures are going to be left behind. One of my favourite places is a "food court" on the second floor of a building at Happy Valley, but I only go there with a friend who knows how to order the right food. Had dinner there on Monday night, with the crawfish so fresh we could select the ones we wanted from the tank! And the banana muscles were just wonderful. Last night we dined at a little place along the Bowrington Rd markets where the braised goose was excellent. But again, I don't think I could go on my own as I don't speak or read Cantonese and the staff did not seem to understand much English.
The dim sum breakfast or lunch at the Jumbo Floating Restaurant at Aberdeen is very good and well suited to foreigners. Note it gets very busy on weekends, especially after around 1pm, so head out early. The easiest way is by taxi to the yacht club jetty where the free "ferry" will take you to the restaurant. Taxi cost us about HK$40 from Time Square.
Where to shop:
Well there are lots of up-market shopping malls, but they are much the same as shopping in Aus. Get out of the big malls and look for the smaller shops. Mrs NM found the shoe shopping to be amazing with a far better range of styles and colours than back home. She bought 4 pairs of shoes for about HK$600. Some good value clothing chains such as Bossini and Giordano are in most locations (Causeway Bay, Admiralty, TST, Mong Kok etc).
But be sure to check out some of the street markets. Some stuff there is junk, but some good value can be found too.
Note that most shops won't open until 10 or 11am, but will be open until 10pm.
Enjoy!