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Everything in London is expensive, so it's just a matter of what degree of expensive to you want. Expect nothing under $150 a night. Marriott County Hall, next to the London Eye has the perfect location and fits those criteria but may be a bit pricey. If you're a Marriott frequent customer member, it's a good place to spend your points but otherwise is around $400 per night. The Premiere Travel Inn, London County Hall is in the same building and about half the price price but does not have a fitness facility. Both are in the heart of everything, just across the bridge from Parliment.
Another option I use is Jury's Inn Chelsea. It's not quite as centrally located but a short walk to the tube station cures that. It's also right by a train station and water taxi dock so getting into London is very quick and easy. Has everything you're looking for, except fitness (but there's a health club nearby with day-rates), and will be about half the price. It's in a quiet location, just off the river and right across the street from Laura Ashley's world headquarters. Some good pubs in the area too.
Websites
http://www.marriott.com/hotels/travel/lonch-london-marriott-hotel-c...
http://www.premierinn.com/en/home.action
http://londonhotels.jurysinns.com/jurysinn_chelsea
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