A friend of mine and I stayed at the Best Western Date Tree Hotel for Coachella 2011 (this past weekend), and we couldn't have been happier with our hotel choice.
If you are planning on going to Coachella 2012, I highly suggest the Date Tree Hotel. The hotel is only four miles from the festival, but the distance doesn't really matter, because the hotel offers a shuttle service for $10 / way, and is run by Jeff, who is one step below a God in my eyes. Simply stated, Jeff is awesome and a lifesaver. Jeff will take you to the festival at intervals of every 30-40 minutes, and pick you up as late as 4am. Jeff also brings waters, offers to stop for food, and makes sure that every hotel guest gets to the festival at the time they want and back to the hotel safe and in one piece. Jeff makes the transportation issue for Coachella a non-issue.
The rest of the hotel staff was also amazing - the front desk people were extremely helpful and courteous. The hotel offers a very nice continental breakfast with waffles, egg/sausage sandwiches, bagels, fruit, and other misc. items that is a great way to start the day in preparation for another day at the festival. The hotel has a very nice pool/hot tub area that is open 24 hours, and the rooms were clean.
If you plan on going to Coachella in '12, definitely consider the Date Tree Hotel BW, I don't think you will find a closer or better hotel accommodation for the festival.
Thanks for an amazing weekend BWDTH staff and especially Jeff!!!!!!!!!!!!!!!