Storyland is a great trip. You will love it. Clean, well-kept, inexpensive. We have stayed at the North Conway Grand Hotel, at the Fox Ridge Resort, and at the Comfort Inn. All were nice. NCGH is right in the midst of the outlets. Fox Ridge has an outdoor pool in addition to indoor, and Comfort Inn has mini golf right outside the door. I also know people who have stayed at Mountain View resort and the Nordic Village.
Did you know that if you go to Storyland after 3 pm, you get to be readmitted the next day for free? It is a great deal. If you get up there in time, I recommend you do that so your little one gets a taste of the park the first day and you can go back the next morning.
Enjoy!