Lodging for Five

My family of five (2 parents, 1 grandparent, 2 kids ages 6 & 8) is traveling to Italy for 3 weeks this summer and I have found that vacation apartment rentals are by far the most economical. Even in the big cities we have found very nice rentals for around 250-300 Euros/night, which includes living space, multiple bedrooms, and kitchen. Very few hotels can accommodate 5 in one room (and even then, for a week would you want to do that?). Two rooms in a hotel will run you much more per night than an apartment.
In the country, consider agritourism--family farm. If you can find one fairly centrally located, you can do a lot of daytrips this way. Good luck!

I'd go with London and rent an apartment.Vrbo, gowithit, and Coach House London vacation rentals all have properties that could fit five people. You'll have privacy, a place to call home which means you can cook some of your own meals, watch the tellie, and possibly have internet access and a washer and dryer to do laundry. Since you wanted to base somewhere securely having an apartment allows that piece of mind. When choosing the apartment make certain you are close to public transportation. Will make it easier with the kids in tow after a long day of exploration. Lastly, remember some apartment rentals have a minimum stay. Be certain you understand that when you book.

Try www.Homelidays.com, for a great selection of Apartments,houses,flats etc to rent. Its a great option for any family, and having a kitchen can save a bundle in food costs.

We traveled as a family of five (first with a teenage girl and two younger boys, youngest daughter at grandmas - then with two teenage boys and younger girl) for a couple of month long trips and a lot of shorter ones.

We stayed at a combination of hostels, B&B's, budget hotels, nice hotels and apartments depending on what was available.

We traveled in October and didn't do reservations. In stead we called ahead when we needed lodging for the night. I had made a list of potential lodging choices for our stops and would call about 10 am. Rather than ask for a specific set of rooms, I'd ask if they had something available for two adults and three children for x nights. I'd let them tell me what was available. If it sounded like it would work, I would ask the price. If it sounded reasonable, I'd book it. I sometimes had to call a few places but we always found something.

We were most happy with apartments. Most require a week to book in advance but that doesn't apply when you are there and they are vacant. In B&B's and hotels we usually booked a double and a triple room (although on occasion got two doubles and a single). At hostels, we did both family rooms and dorm rooms (it was good to get our kids somewhat out of their comfort zone). Generally hostels aren't a good deal for a family, you can do better for the same price at a budget hotel or apartment.