I would suggest staying in downtown Madison so you can walk to restaurants, cultural sites and more. There are some great options. Our recommendations include:
Graduate Hotel: A new boutique hotel in a perfect location a block off State Street, between the University and the Capitol. It has a preppy, college theme. There is a small casual cafe on the first floor and a fun rooftop bar with great views. 601 Langdon St.
Mansion Hill Inn: This is a lovely B&B with ten rooms located in a beautifully restored mansion, from 1857, a short walk from Capitol Square. It is at 424 N. Pinckney St.
The Buckingham Inn at 1615 Summit Ave. is another good option.
The Edgewater: This is an upscale hotel property located along Lake Mendota. It opened in 1948 and was totally renovated in 2014 where two existing buildings were remodeled and a new tower added. It is in a great location for walking downtown to shops and restaurants. There are a number of dining options from the Boathouse for casual dining to the upscale Statehouse with stunning views of the lake. 1001 Wisconsin Place.