I've stayed at the Hilton, HOJO and Carousel Inn, and of the three, I'd choose the HOJO.
Hilton: Nice hotel, but too far to walk for me. I'd need to ride the ART everytime. The HOJO ART route (if you decide to use it) is not as crowded. You're first on (when going to DL) and first off (coming from DL) the trolley when staying at the HOJO.
Carousel Inn: Very close, but I have issues with the quality of the rooms. When we stayed there, there were exposed outlets (hard, especially when you have a baby and toddler). We stayed in a one-bedroom suite in the summer and the bedroom where we had the kids stay didn't have ANY A/C vents to pump cold air into the room. Very, very strange. When my parents stayed there, their A/C was extremely noisy. Parking is also at a premium.
HOJO: An easy 7-10 minute walk from DL's entrance, with an option to take the ART, if needed. Kid friendly, nice pool with some rooms having decent views of the fireworks. Staff is also friendly and their gift shop is stored with almost everything you need if you forgot something. Parking is free and plentiful. Close to sit down restaurant or fast food.
HTH!