+1 for the Emily Morgan. Stayed there the day after Thanksgiving, 2005. Very nice. People and PET friendly. The kitchen has special pet menus for dogs and cats!
http://www.emilymorganhotel.com/index.html
Having said that, I've always wanted to stay at the La Mansión del Rio. It used to be the place to stay in SA. Don't know if there are any reasons not to stay there these days. If it's not what it used to be, I'm sure someone will say so.
http://www.omnihotels.com/FindAHotel...iondelrio.aspx
I also stayed at the Palacio del Rio at the end of December, 2004. It was nice too, but I now would prefer the Emily Morgan or La Mansión, I think.
http://www1.hilton.com/en_US/hi/hote...Texas/index.do
No matter which one you choose, you want to be on the River Walk side of either the Palacio or La Mansión, or you want to be on the Alamo side of the Emily Morgan. It might cost a little more, but it's worth it.
Oh, don't forget your camera! If you've never been to the Alamo before, don't be disappointed. Yes, it's in the middle of downtown, but it was there first. Accept it for what it is - The Cradle of Texas Liberty. BTW, my daughter peed on The Cradle of Texas Liberty when she was about three months old. Kinda embarrassing, standing there a puddle, holding a kid who had just desecrated the Alamo! Luckily, we were outside the buildings, but still....