As far as location goes, it's hard to beat the Renaissance Albany, which is across the street from the capitol building and within walking distance of most of the city's cultural, culinary and nightlife hubs. It is a Marriott property, but the funky design keeps it from feeling overly corporate.
The bar and restaurant in the lobby, Wellington's (6:30am to midnight Monday to Saturday, 7am to 11pm Sunday), has a surprisingly innovative menu of food and cocktails, but it is a bit pricey for the area.