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Looking for a good location for a DC small group meet up

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A group of us who post on another message board are planning to meet up in DC in a couple of months. We will need about a dozen rooms and are looking for a hotel/inn/B&B that is close to public transportation, in walking distance of restaurants, and is under $175 a night.A nice lobby or other public space would be a plus. Does such a place exisit?

I haven't been to DC in decades, so I don't even know the neighborhoods. I assume that places close in are quite expensive and that further out are less so but is there a happy medium?

Recommendations of areas or specific hotels/inns/B&Bs would be greatly appreciated.

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