Now that it looks like Hilton Castle will be reopening soon, Im planning to incorporate it into my next UK trip, when we are up and away again from Australia. Im not sure whether to stay near the castle or opt for Durham which I have been advised previously, is a good general choice. However at that time I didn't mention my interest in Hilton which is of ancestral importance to our family. Id like to check out the general area that pertains to our history as well. Any suggestions, comments or recommendations of places to stay?

Pretty sure it is "Hylton" but maybe you mean a different castle. It depends a bit on who "we" are. A large family, an aged couple... It is north of Sunderland towards the coast. Sunderland is a city without any especial merit. I've stayed on the north coast a bit and also along the river (ex industrial) with some nice bars and places to stay but I'd not travel around the world to stay there.

Newcastle is interesting for a visit. Easiest by train as parking is a pig, but the main theatre in town, the weird train bridges and the central shopping are is nice enough, but the river area again is best.

I'd stay in Durham. Don't stay on the Rock unless you get a great price, stay down in the town and walk in.