There are many fine souls on here likely to have more up-to-date info on good hotels and B&B than my own. What I would say is that if you are taking a car, make sure you ensure whether the place provides free parking or factor this extra cost when comparing the meerkat (sic).
Bath parking is a nightmare at the best of times and limited central parking space costs a real premium. I have an abhorrence of paying for parking at the best of times anywhere, and the last time I went, the yellow lines now seem to extend out to way over one mile radius of the centre and often much more.