The Wolf parents and assorted family have made reservations here at the Hilton:
Hilton Garden Inn Krakow

It is just outside the Old Town area and walking distance to most of the historic parts of town. The river goes through the center of the city, and the hotel is less than 1 km from the Wawel Castle, the historic center of the city of Krakow. The hotel is modern and and has free wifi, nice looking rooms (as you can see to the left here) and short walk to lots of attractions and nightlife.

Walking just over the river will bring you into the old town Krakow with the famous castle and market.  There are tons of shops and restaurants lining the walk through the old streets up to the castle.  While we would like people to be close, any places in the old town area will be just a short walk away.

There are also lots more hotels in the 80-120 a night range here from Expedia for that weekend:
Hotels from Expedia

Or if you are a little more adventurous and want more of a true European experience for $40-$80 a night:

Hotels and Hostels from StayPoland.com