Drayton Manor is a great place for young kids (under 7), as there's more rides for them than the likes of Alton Towers. Thomas Land isn't that big though and there's only 4/5 rides that will provide a thrill for adults. Plus side - its compact and you don't have to traipse around too much.
Can't recommend any accommodation though as its close enough to use for us to do in a day. There should be loads of Travel Lodge type accommodation in that area though. Stay north of Birmingham though, you could even go as far as Burton and still be within 30 mins drive.