In a Youth Hostel near Munich Park. Bit further out, but only 15 minutes on the U-bahn to Marienplatz.
£500 - 4 nights, 1 adult and two kids, breakfast included,
Me and my two boys (11 & 13) fly out from Edinburgh to Munich via Brussels on the 12th June and back via Frankfurt on the 16th June. Booked direct with Luthansa and although not exactly cheap didn't think it was outrageous for the three of us.