I stayed at the ITC Park Sheraton in Chennai. As a gold, I was given an executive room with breakfast/afternoon cocktails/4 pieces of laundry on a cash and points stay. I couldn't speak more highly of the hotel really.
The LM isn't close to anything except the airport. It is about 40 minutes from the centre of town, but if you're just doing an overnight stop this wouldn't be a problem I guess.