Perhaps NYtraveler is right. We have stayed in South Kensington. We once stayed in the oddest place whose name I don't remember and the even the vaunted London cabbies could find it. It was a wedding hall but it had rooms through the back if you used a freight elevator.

Thank you again, I will pass along your suggestions.

BigAl; I think I know the place you mean, but can't remember the name now. It was off Sloane Street, and was really a wedding/event venue with rooms. Large room, but, very odd, the bath was in the middle of the room.
I booked it through laterooms.com, and it was a good deal and location. And the room large enough for 4, I seem to remember.

for a budget with kids-- make sure the hotel has a really good breakfast offering included... and one that is serve-yourself so the kids can fill up on stuff they like. this will save them having an expensive breakfast out... and likely they can get by with just a little something for lunch. that way, your only really expensive meal will be dinner.

when i went to london last fall, i scoured the london groupons for 2 months prior. this saved us a lot of money-- and since any restaurant we went to was somewhat of a crapshoot (like an expensive indian restaurant a friend recommended that wasn't very good...) groupons can be a great way to go. just make sure you research the location and reviews before you buy... and don't buy too many!

actually, our favorite and truly reasonably priced restaurant was right in covent garden and we found on a groupon. it was called Sagar. It was vegitarian (which i'm not) but you won't miss the meat. It was outstanding. Mostly, you won't end up eating in the area where you are staying... you will end up eating wherever you are for the evening.

Agreeing with the post up above about renting a flat instead, it'll be really less expensive than a hotel.

As for cheap eats, maybe this can help:
http://www.timeout.com/london/food-d...est-cheap-eats
http://www.standard.co.uk/goingout/r...n-8558598.html

If you stay in Knightsbridge Orsini"s across from theV&A is resoanable and excellent.snd Carluccio's is excellent the one onff Kensington HJih St is quieter than thr one nnear south Ken tube

Thank you all. Yes Tulips, with your help I did some research and it was called Searcys Roof Graden Hotel which did have an exceptional large room, especially for London. The largest room we ever had in London was either in South Kensington or Knightsbridge even if there was a pillar in the middle of it.

That's right - it was Searcys. I just looked at their rates, and it's not cheap, but I got a deal through laterooms.com. The family rooms would easily accommodate a family with kids. Odd hotel though.

Searcy's was relatively cheaper when we stayed there and yet to be refurbished. We like staying in quirky places.