Legoland Village
Ellehammers Allé 2
+45 75 33 27 77
from 1 person room 595 DKK up to 5 person room 1045 DKK
A family "hostel" situated near the Legoland park, with many family oriented activities in the summer season. Guest kitchens, laundromats, supermarkets and free access to the public indoor pool
Hotel Legoland
Aastvej 10
+45 75 33 12 44
1500-3225 DKK
The amusement park itself has a hotel as well. This is a bit more expensive alternative, but worth it trying if you're traveling with kids, and it has rooms for up to 2 adults and 4 kids
The biggest provider is Lalandia see 'Do' which has hundreds of vacation rentals available, centered around families.
Billund Bed & Breakfast
http://www.billundb-b.dk/
+45 60 45 79 72
210 DKK per person
Billund Kro
Buen 6
+45 75 33 26 33
750-1640 DKK
Lillevang
Lillevang 67
+45 75 35 30 30
800-1000 DKK
Self catering apartments in a renovated farm house.
Hotel Propellen
Nordmarksvej 3
+45 75 33 81 33
1145-4200 DKK
This hotel is also situated near Legoland and the airport. It is kid friendly, and has family rooms for up to 5 persons, on site restaurant and conference facilities.