This place is great for families and very reasonably priced (for anywhere, not just Switzerland!). Rooms are fun with the kids beds up on a platform above the bathroom - they think that's extra cool.
The service was great too. Lots of personal attention, and when the manager heard I was Australian she took me into the restaurant to find another Australian family staying there and introduced us to them (not used to such personal service in Switzerland). They are really great with the kids too.
Apparently it's just a few hours drive from Zurich.
www.twannberg.ch