Do you truly want to be near DCA? If so, then Old Town doesn't really fit the bill. If you want DCA, then you're probably looking at Crystal City-area hotels. I would choose one of the Marriotts, or the Renaissance Capital View or the Residence Inn Capital View. None are "upscale", but I would think the price would be right.

If you want "upscale" and DCA, I think the Ritz at Pentagon City is your best bet. Yes, it's attached to the mall, and, yes, it's more of a "business" Ritz than a "resort" Ritz (okay, it's ALL a "business" Ritz), but you'll get (or should get) excellent service and among the nicest rooms in the DCA area.

Now, if DCA isn't really what you need, as others have illustrated, you have a lot of choices.