Why not stay downtown? The Hotel Harrington is right in the center of things (near the Metro Center and Federal Triangle metro stations, about 3 blocks from the mall) You can walk to mostly everything from there. A block from metro, this hotel is basic, but in a safe area, even at night. If you stay in college park you are looking at a very long ride in on metro in the morning (and that can cost a lot!) and back in the evening, you cannot enjoy any kind of evening with the kids (and it's a great time to walk down to the mall and see the monuments!) What I like most is that you can take a tired kid, or a kid having a bad day, back to the hotel for an afternoon nap, without an hour of commuting.
The Harrington is basic, but clean, and it costs $100 a night for a double room - with family size rooms.
If you really do not want to stay in DC I'd recommend Virginia. The Americana in Crystal City is a good budget hotel, as are some of the motels in Arlington, near the Arlington cemetery. But you will walk a ways to metro from any of these and it will be much less convenient.
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