I visited Frankenmuth during the Christmas holidays a few years ago and it was absolutely gorgeous! I love that time of year, plus it was snowing. But the holidays aside, the town is like a mini version of Germany. I think it was settled by a few German families way back when.
My fiance is German and felt at home when we walked around the city and ate at one of the restaurants -- which happened to be owned by Germans. Even the street signs look like the ones they have in Germany.
We only drove through the town for the day, so I don't know anything about accommodations, but there's one hotel that looks absolutely gorgeous -- you even have to drive through a covered bridge to get to it. How quaint is that?
My fiance and I always talk about trying to get back there sometime soon -- hopefully we can stay at that hotel! Here's the web site http://www.frankenmuth.org/ for more details and information.