I think that there are a couple of Hotels off Schwabestrasse that are pretty reasonable, but I wouldn't have a clue what they are a called. Don't worry about being a little out of town, the public transport is excellent and the taxis are pretty good. The city centre is around Hauptbahnhof and Konigstrasse.
If you fancy some decent craic whilst you are there then most of the bars around Charlottenstrasse are pretty good, but apperently they have knocked down Pauls Boutique on Konigstrasse (it server the most lethal long island ice teas in the world).
There is an Irish bar called Biddy Early's on either Kleine Konigstrasse or Rotebuhlplatz; avoid it like the plague. It's full of GI's telling you they are Irish and generally acting like the just liberated Germany; although karaoke after jagermeister and stroh is a blast.
If you do fancy an Irish bar then go to O'Reilly's which is a little out of town on the corner of Reuchlinstrasse and Rotebuhlstrasse, near Schwabestrasse ubahn. There is a reasonable indian at the other end of Reuchlinstrasse.
If you walk from there back up Rotebuhlstrasse towards Feuersee there is a great bar where you can order a 'boot' (a glass boot equivalent to doing a yard of ale) or a metre of beer which is a metre long wooden rack holding however many half litre glasses that happens to fit. On the other side of the lake is a decent german restaurant which does an amazing mixed grill and fantastic moultaschen.
I love Stuttgart, great city.