Any recommendations for hotel with character?
We'll be staying in the Albergo Delle Draperie which our travel agent recommends highly.
http://www.albergodrapperie.com/ing/chisiamo.htm
I have only stayed in Bologna once and our hotel was very good but not with any great character. You will want to stay in the historic centre Piazza Maggiore and 2 hotels that are highly recommended are Art Hotel Orologio, Grand Hotel Baglioni and Hotel Corona D'Oro 1890. Check them out on the venere website - photo gallery. When you go to venere click on the Piazza Maggiore section and they will come up.
I stayed at the Albergo Delle Draperie in 2006. Great location near Piazza Maggiore, clean rooms, good front desk staff. It is a small place, which is a plus because it is overlooked by those booking larger tour groups. You do climb stairs to get to the front desk, and the entrance is a doorway rather than a fancy hotel lobby. Its a good place to stay.
I had a nice stay at the Hotel Roma. It is on Via d'Azeglio just south of Piazza Maggiore. Great location to walk and explore the historic area. It is a 2- or 3-star place, moderately priced, rather than a big 5-star hotel. Nice breakfast and friendly staff.