There are several hotels in Lebanon itself, where Festool USA HQ is located. Of those options, I would personally say that the Holiday Inn is the best of the bunch. But you are ~20 minutes from Indianapolis' northwest side. There are not a lot of restaurant options other than fast food in this area.
I like the Hampton Inn in Zionsville a lot, it's only a couple of years old and very nice. Conveniently between Lebanon and Indianapolis if you want to go into the city for any site seeing, etc. From this hotel, you're about 10-15 minutes from Festool USA and only 5 or so from Indianapolis. There are a few restaurants across the road that are decent and plenty more in Zionsville, which is a well-to-do suburb of Indy. If you're interested, one of only three Bentley / Rolls Roybe dealerships in the U.S. is there, right behind the Dairy Queen.
Festool was, last I knew, using the Fairfield Inn on W 86th in Indianapolis. It's about 20 minutes from Festool USA and an easy drive. It's right across from Traders Point which has many restaurant options, a movie theater, shopping, etc. Just down the road to the east there are tons of other food options and shopping.
I would highly recommend that everyone consider visiting the Indianapolis Motor Speedway. It has a great museum that's open every day and you can even ride a lap around the track (on a bus) for a few bucks. A lot of history there.
Unsure if I'll make it to Connect or not, but it's possible.
Shane