Hi Meeta. Mistry
Greeting from Peggy, Top China Travel
Since you just refer to come to Hangzhou in Oct break, so it is hard to offer you a specific recommendation because the hotel prices of National Day holiday (Oct 1st - 7) and post holiday are totally different. So I recommend you to pick out the hotel by yourself.
Here is a link of Hangzhou hotels reviews on TripAdvisor: http://www.tripadvisor.com/Hotels-g298559-Hangzhou_Zhejiang-Hotels.html
As a room for a family with more than 1 child, some hotels will offer family connecting room.
Feel free to contact with us in any moment by mail if you have any question on China tour service.
Have a nice day!
Best Regards
Peggy