Just so's everyone has an idea of relative costs, the hotel room prices I've been getting quoted range from $89 a night to $139 a night.
The $89 place Howard Johnson Plaza Hotel is on the far east side of town, which really doesn't have a lot to recommend itself. The hotel is very pleasant, we had my mother's memorial party there and they did a good job with the catering. Just, it's far out and there's not much around it in the way of food/shopping/etc. The number 6 bus runs right in front, though, and that will take you straight downtown.
The two places I like the best for location are the:
Best Western InnTowner. It's on the west side of the campus, within walking distance of State Street (about 25 minutes), the Monroe street area (about 15 minutes) and University Station (about 10 minutes.) All nice shopping areas with plenty of good restaurants to recommend themselves. Room rates are $109 per room, flat rate up to four people per room. The Highland Club (which is part of the hotel) has fancier rooms starting at $149. Of note, this is a non-smoking hotel.
Best Western Inn on the Park. Right on Capitol Square, which anchors one end of State Street. Close to all the museums, bunches of restaurants and stores, bars and pubs galore and on Saturday a huge ass Farmer's Market that is set up all the way around the Square. Rooms are running $119 for a single (1 bed, 1-2 people), $139 for a double (2 beds, 1-2 people.) We had one of my high school reunions here. Can't say I remember much of it, but it's nice enough and the location is prime.
There's a third hotel I like, but the location isn't optimal. It's the Candlewood Suites. It's in Fitchburg, which is an up and coming part of town, so this hotel is fairly new. Rooms are $109, single and double. It's got a very good restaurant, I was quite impressed the one time I was there for dinner. It's close to some newer shops, more restaurants and a brew pub. I'm not familiar with the bus routes, so I have no idea how hard it would be to get to the downtown area for fun and games.
I've gotten a few more proposals, but I'm not at home so I don't have them handy. The ones I listed are the ones that I've printed out hard copies of the info for side by side comparison.