Are you primarily interested in staying in a
Disneyland Resort (DLR) hotel for the full Disney experience or would you rather save a lot of money and stay off-site? If it is the former, and money is not an issue, the
Grand Californian Hotel (GCH) is especially lovely during the holidays, but it is the most expensive of the 3 DLR hotels. It reminds me of a sort of elegantly rustic mountain chalet/lodge, and the lobby is huge, with dark wood, high ceilings, dim lighting, comfy chairs and sofas, a piano player, and during the holidays there is a guitar player strumming by the fireplace, carolers singing by the enormous Christmas tree and Santa posing for photos. It is a great place to just sort of plunk down and relax, sipping a beverage and enjoying the vibe - whether you are a guest of the hotel or not. The GCH really kind of lends itself to the seasonal feeling, but not in an ostentatious, showy kind of way. The other two DLR hotels are magical as well, but in a different way, with more 'Mickey touches' around the rooms and adorable Mickey head bath products in the bathrooms. The
Disneyland Hotel (DLH) is the original, and is beloved by many folks on this board. The grounds are lush and pretty, with lovely waterfalls and koi ponds and a fun pool area that kids enjoy. There are also remote-controlled mini Jungle Cruise boats to play with with.
Paradise Pier (PPH) is a more modest Disney hotel, with not much scenery to speak of on its property, but a very cute beachy/sun/surf/nautical type theme throughout the corridors and rooms (Mickey lifeguard lamps; surfboard room number signs; seashell soap dish, etc.) and pretty pastel colors. I like to be immersed in the whole Disney experience from beginning to end, so I like to stay onsite.
Now, as far as offsite hotels, there are many that people on DIS rave about. HoJo's is a particular favorite among DIS-ers, but many people also stay at Candy Cane Inn or Tropicana - there are lots of them, and they are much more economical.
In any case, wherever you decide to stay, you will love DLR at Christmastime (assuming you have not already experienced it). It is truly magical and enveloping, and every inch of the resort is decked out in holiday splendor - every hotel, every shop, every restaurant - and there is seasonal music and the smells of peppermint and cinnamon and other wonderful aromas filling the air. The WInter Castle is breathtaking as it glows incandescently through the park. Also, there is the wonderful Haunted Mansion Holiday and It's a Small World Holiday which are not to be missed - the IASW Holiday facade illuminated in glorious colors at night is one of the most beautiful things you will ever see at Disneyland - truly stunning to behold!