Went to a launch two years ago and stayed at the Clarion Inn Kennedy Space Center Hotel in Titusville.
It is directly on the river across from the launch pad. Truly awesome!
It has a grassy area behind it on the river which is great for tailgating and your lawn chairs!
We went to a launch that took place at 4PM and stayed that night to avoid the massive traffic jams out of the area. It had a nice pool at which to spend the evening.
Only downside is booking a room you are at the mercy of any delays in launch.
I give the experiencea 5 stars
.