Since we live on the west coast, we go to California every year to visit Disney in Anaheim and then San Diego.
We use
www.Priceline.com for booking our hotel. Our friends who came down with us in March got the Hyatt for $30 USD/night. They upgraded to a kidsuite for an extra $45/night. We've stayed at the Hyatt and it is wonderful. Another favourite is the Anaheim Marriott, which is next to the Convention Centre. The Marriott Suites next door to the Hyatt is brand new and looks very nice. Lots of people also like the Candy Cane Inn.
One hotel to avoid is the Anaheim Hilton, where my DH and I spent our last holiday. It was gorgeous in the lobby (fooled us) but the rooms are worn and weary -- comparable to a Motel 6. It's also very business oriented.
In San Diego, hotels are VERY expensive. That's why we use Priceline again. We stayed at the Hyatt La Jolla during our last visit in March, and it was GORGEOUS. For $58 USD/night, it was a bargain for a 4 star hotel.
If you plan on using Priceline, check out
www.biddingfortravel.com first to find out what bids other people are getting hotel rooms for. Also, Priceline only accepts American credit cards, so being Canadian, I can only use my American Express card.