For an alternative to hotels, especially if traveling with a family, a self-catering apartment may be a nice (and roomy) alternative to a hotel. There are several located within the immediate vicinity of the Vatican, providing a comfortable and furnished home at a reasonable price.
Visit www.guestinitaly.com. Click on the Rome apartments and check out their nice selection. Look for the apartments listed at Vatican or Prati, the neighborhood next to the Vatican. We were amazed at the prices for some of these flats - only 180,000 to 300,000 for many. With that you get all you need for a comfortable stay - linen, cookware, dishes, nicely furnished, many in historic buildings...and a lot more space!
In addition, it gives you and your family a chance to spend a few days living like a Roman, surrounded by Romans. Enjoy la dolce vita in a Roman home!