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Suggestions for accomodation 5 nights in Rome and its surrounds (Dec-Jan)

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Hello,
We hope to spend New years eve in Rome plus 4 nights after that there as well (Dec 31-Jan 4). Mother and two kids (18&22).

(1) Where do you suggest we stay on New years eve so we don't have to be travelling in the night to get back to our accomodation. We want to have a nice dinner somewhere and watch the festivities and get back to our accomodation by foot (walking) after.

Would like a central area where there are lots of shops and restaurants and interesting places.

Prepared to spend 160-200 Euros per night. Hotel preferred. Would also consider a self contained apartment.
Thanks

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