Me and Kaz stopped here a couple of years ago.
http://www.petitbonheur.be/en/index.php
might be a bit small for your group and isn't exactly walking distance into town. Malmedy might make a good base, quite a pleasant town. Ride down the Our valley (German /Lux. border), Aachen, the museum at La Glieze and generally engoy the local roads and countryside. The memorial and museum at Baugnez (Malmedy Massacre) etc.
HTH
Roy