I have only stayed at Chandalar Ranch on the Chena Hot Springs Road. Pretty basic, but great large window facing north so you can peek out often to see if the Northern Lights are out.

One that I read good comments about on Trip Advisor is Dale and Jo View Suites.

If it were *me* I would never stay in the city if my main goal was to see the Northern Lights. Your chances diminish immensely - do you rely on the hotel's wake up call? can you book a taxi or some sort of shuttle/tour at the last minute? do they go where you really feel is best? will they stay as long as you want or, since a couple of people are getting cold and didn't bring enough camera batteries, do they make you leave early? I prefer to be in control of my travel and not rely on others, especially with something like this. But it is your trip, so you certainly can do what you want!