I used to live in the area around the Sagrada Familia and Parc Güell. If my friends were in town where I would recommend depends on what they are looking for. It will also be important to have a parking in mind if you have a rental car, parking might be tricky in that part of town.
I'd say look at Sercotel Rosellón if you want a more upscale experience, they have a very nice rooftop bar with views of la Sagrada Familia. Another place is Hotel Amrey Sant Pau, less frills but very nice rooms with views of Hospital de Sant Pau.
Another tip would be, since you are in that area, to visit the Hospital de Sant Pau, a Modernista site on par with Parc Güell but with half the crowds :-)